Equities snap five-day losing streak on hopes of India–US trade talks

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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Indian shares rise

By Dehuti Jani

January 12, 2026 at 11:57 AM IST

Indian equity benchmarks rebounded on Monday, snapping a five-session losing streak after comments from the US ambassador to India Sergio Gor signalled that New Delhi and Washington would resume trade discussions as early as Tuesday. The reassurance helped markets recover sharply from early losses, with bargain buying emerging across metals, FMCG and select banking stocks after last week’s steep sell-off. The Nifty50 rose 0.42% to 25,790.25, while the BSE Sensex added 0.36% to close at 83,878.17.

Buying momentum strengthened through the day, with the Sensex rebounding nearly 1,100 points from its intraday low and the Nifty recovering from 25,473 to a high of 25,813. Coal India, Tata Steel, Asian Paints, JSW Steel, Hindalco, Trent, UltraTech Cement, HUL, SBI and ICICI Bank were among the top gainers, rising between 1% and 3.4%. On the downside, Infosys, Bajaj Finance, Tata Motors PV, Bajaj Auto, Eicher Motors, Shriram Finance and HDFC Bank weighed on the benchmarks. Sectorally, metals, banking and financials showed relative strength, while FMCG and PSU banks saw modest support.

Top Movers of the Day

Tejas Networks shares plunged over 12% to a three-year low after the company reported a net loss for the December quarter, marking its third consecutive quarterly loss and triggering heavy selling pressure.

Hindustan Zinc and Hindustan Copper were among the notable gainers, with both stocks rallying around 4% on strength in silver prices and a rebound in metal sentiment during intra-day trade.

Vedanta advanced about 3% amid broader strength in metal stocks, supported by sectoral optimism on earnings and commodity price trends.

Cupid shares rose over 4% after the company announced that it will consider a bonus issue, lifting buying interest in the counter during otherwise weak trade.

IREDA shares climbed around 4% after the company reported a strong Q3FY26 result, with consolidated net profit rising about 37% year-on-year, driving positive trading momentum.

Power Finance Corporation saw gains of around 2% in early trade, as buyers picked up the state-owned NBFC amid selective accumulation in financial names.

SignatureGlobal (India) was under pressure, falling about 7%, after posting a slower operational performance and signalling challenges in meeting previous pre-sales guidance.

Futures & Options
The Nifty January 2026 futures closed at 25,880, trading at a premium of 89.75 points over the Nifty 50 cash close of 25,790.25, as the benchmark index gained 106.95 points or 0.42% in the spot market. Sentiment in the derivatives segment remained cautious, with the India VIX rising 4.05% to 11.37, reflecting elevated volatility expectations amid ongoing geopolitical and macro uncertainty. HDFC Bank, Tata Consultancy Services and Reliance Industries emerged as the most actively traded stock futures on the NSE, while January 2026 F&O contracts are set to expire on 27 January 2026.

Bonds
Government bond yields eased on Monday as investors reacted positively to a lower-than-expected state debt supply for the week, reducing immediate supply pressures after a record borrowing plan for the quarter. The benchmark 10-year 6.48% 2035 bond yield ended at 6.6050%, down from 6.6401% at Friday’s close. Sentiment was supported by the announcement that states will raise about ₹2.68 trillion at Tuesday’s auction, significantly below the earlier indicated ₹3.62 trillion, providing near-term relief to the bond market and encouraging modest demand at the longer end.

Forex
The rupee ended nearly flat on Monday, caught between a broadly weaker US dollar and steady hedging demand from domestic corporates, while optimism around US-India trade talks lent marginal support to sentiment. The rupee closed at 90.1525 per dollar, little changed from 90.1625 in the previous session, as persistent corporate dollar demands capped gains despite the greenback easing against major peers amid concerns over the US Federal Reserve’s independence.

Crypto
Bitcoin rose 1.5% to $92,094 in Asian trading on Monday, staying steady amid risk concerns over US political and economic tensions. Gains were limited by geopolitical uncertainty and anticipation of key US data. Fed Chair Powell’s comments about a DOJ subpoena added unease. Ethereum climbed 2% to $3,160, while XRP fell 0.6%, showing mixed digital asset sentiment.

US Stock Futures
US stock futures extended losses early on Monday as investor sentiment was dented by concerns over the Federal Reserve’s independence after Chair Jerome Powell said the Trump administration had threatened him with a criminal indictment. Futures on the Dow Jones Industrial Average fell 0.6%, while S&P 500 futures slipped around 0.8%. Nasdaq 100 futures led the declines, tumbling 1.1%, as traders locked in profits after Wall Street closed at record highs in the previous session.

US Treasury Notes
US Treasury yields displayed a bear-steepening trend. The 10-year yield rose to about 4.19%–4.20%, influenced by Federal Reserve independence concerns following reports of a DOJ investigation into Chair Jerome Powell. Meanwhile, the 2-year yield fell to approximately 3.52% as markets reacted to a mixed December jobs report with lower unemployment but weaker hiring, moderating short-term rate expectations.

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