The Trump candle: This Sergio Gor remark triggered 700-point recovery in Sensex within an hour

The Trump candle: This Sergio Gor remark brought 700-point recovery in Sensex within an hour

• Sensex and Nifty 50 rebound after US envoy's positive trade deal remarks
• US Ambassador Gor called India "essential," boosting market sentiment
• Export stocks surged after easing of concerns over Trump's tariff threats

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Indian stock markets recorded a sharp recovery on January 12 after US Ambassador Sergio Gor commented on India-US trade deal.

Sensex, which had earlier declined 715.17 points or 0.85 percent to hit an intraday low of 82,861.07, recovered all losses to trade in the green. Nifty 50, which earlier slipped below the 25,500 mark, also sharply recovered all losses.

As seen at 1.10 pm, Nifty 50 was up 37 points (0.14 percent) to 25,738.40, while Sensex gained 71 points (0.08 percent) to 83,647.17, after trading in the deep red in the morning.

What did the US Ambassador say?

US Ambassador to India Sergio Gor said there is "no partner more essential than India" to the President Donald Trump-led country, boosting markets. He further added that both the countries continue to engage actively, and the next call on the much-awaited trade deal will take place tomorrow. "President TRUMP will be visiting India in next 1-2 years hopefully," he added.

While assuming charge in New Delhi on Monday, Gor said that Trump had conveyed his best wishes to Prime Minister Narendra Modi, referring to the relationship between the two leaders as genuine. "Real friends can disagree, but resolve the difference," Gor said, framing current trade negotiations as part of a broader, resilient partnership.

Notably, India-US trade deal has seen significant delays, putting pressure on markets for most of 2025 on the back of rising Trump tariffs. Analysts had noted that markets may see some rally in case of any positive news around this front.

Sergio also referred to strategic initiatives like Pax Silica, calling it a US-led framework with India as a key partner. “Both sides continue to actively engage. Not an easy to cross the finish line, but determined,” he said, underscoring the challenges and commitment in ongoing talks.

Senator Marco Rubio added, “This year will be a year of reciprocity,” highlighting the mutual intent to enhance cooperation across trade and strategic sectors.

"Positive statement by U.S. ambassador on continuation of talks on India-U.S. trade deal and reiteration of the importance of India as a trade partner have led to short covering during the day," said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

How are markets performing?

Along with the benchmark indices, broader markets also staged a partial recovery, with Nifty Midcap 100 and Nifty Smallcap 100 index erasing significant losses. Bank Nifty jumped around 677 points (more than 1 percent) from its day's low to 59,540.95.

Export-oriented stocks also surged to their respective highs, after Trump's earlier 500 percent tariff threat pushed them down sharply.

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