Sensex snaps five-day losing streak, rises 302 points

Equity benchmark indices Sensex and Nifty snapped a five-session losing streak on Monday, recovering sharply from early losses as optimism over progressing India-US trade talks triggered value buying in energy, banking and metal stocks. However, gains remained modest amid persistent geopolitical tensions and continued foreign fund outflows.

In a volatile session, the 30-share BSE Sensex rose 301.93 points, or 0.36 per cent, to close at 83,878.17, after plunging over 700 points in morning trade. The NSE Nifty also reversed losses to end 106.95 points, or 0.42 per cent, higher at 25,790.25, after slipping below the 25,500 level earlier in the day.

Market sentiment improved in the latter half following positive remarks from US Ambassador to India Sergio Gor, who said India is critical to the US and that both sides are actively engaged in advancing a trade deal. His comments, along with an invitation to India to join a US-led strategic alliance on critical minerals and artificial intelligence, were viewed as a conciliatory signal after recent trade frictions.

Buying interest was seen in Tata Steel, Asian Paints, SBI, ICICI Bank, Hindustan Unilever and Bharti Airtel, while Infosys, Bajaj Finance, Larsen & Toubro and HDFC Bank ended lower. Broader markets underperformed, with midcap and smallcap indices declining.

Sectorally, metal, commodities, energy and PSU banks outperformed, while realty, capital goods and industrials lagged. Foreign institutional investors sold shares worth Rs 3,769 crore on Friday, while domestic institutions provided support.

Asian markets ended higher, European markets were mixed, and Brent crude eased to USD 63.17 per barrel.