Buoyed up by Gor's optimism on trade deal, markets end in green

Sensex rebounds 1,017 points from day's lows, ends 5-day losing streak

Indian equity benchmarks Sensex and Nifty snapped a five-day losing streak on Monday, buoyed up by optimism over India-US trade talks following comments from the US ambassador to India, prompting short-covering.

 

The Sensex fell 0.9 per cent from its previous close but surged 1,017 points, or 1.33 per cent, from the day's low to settle at 83,878, up 302 points (0.4 per cent). The Nifty ended at 25,790, gaining 107 points, or 0.4 per cent.

 

Both indices had tumbled 2.5 per cent last week — their sharpest weekly drop since September 26, 2025 — leading to heavy short positions that unwound on Monday after remarks by Washington's New Envoy to New Delhi Sergio Gor.

 

 

BSE-listed firms' total market capitalisation climbed ₹1 trillion to ₹469 trillion. The India VIX, or “fear gauge”, jumped 4 per cent to 11.4 per cent — its biggest single-day gain since December 1, 2025.

 

Gor said India and the US are actively negotiating a trade deal, with a key call scheduled for Tuesday. He added that the friendship between US President Donald Trump and Indian Prime Minister Narendra Modi is genuine: "Real friends can disagree but will always resolve their differences." 

 

His comments followed Trump's tariff warning and greenlighting a Bill that authorises up to 500 per cent duties on imports from countries, including India, engaging with Russia's energy sector.

 

"The market rebounded on positive trade-deal remarks, with value buying in commodities and banking amid expectations of strong third quarter (Q3) earnings and demand recovery," said Vinod Nair, head of research at Geojit Investments.

 

ICICI Bank and SBI led Sensex gains, followed by Reliance Industries, which rose 0.5 per cent after a 7.3 per cent weekly slide — its worst since October 4, 2024.

 

Market breadth remained weak with 2,837 stocks declining against 1,468 advancing.

 

Foreign portfolio investors (FPIs) sold net ₹3,638 crore while domestic institutions bought ₹5,839 crore.

 

"Going forward, the Nifty faces resistance at the 50-day EMA (25,890-25,920). A decisive break above 25,920 could trigger a sharp rally to 26,100+. On the downside, support lies at the 100-day EMA (25,650-25,620)," said Sudeep Shah, head of technical and derivatives research at SBI Securities.

 

EMA stands for exponential moving average, a popular technical indicator that tracks price trends by giving more weight to recent prices, making it more sensitive and faster to react to new data than a simple moving average (SMA).