Markets rebound sharply on India-US trade deal optimism; Sensex jumps 850 points from day’s low.

Indian equity benchmarks staged a strong intraday recovery on Monday after positive comments from U.S. Ambassador-designate to India, Sergio Gor, on the progress of an India–US trade deal boosted investor sentiment.

The Sensex, which had slipped as much as 715 points or 0.85 percent to an intraday low of 82,861.07, pared losses swiftly and rose nearly 850 points from the day’s bottom to trade around 83,650. Meanwhile, the Nifty recovered from a low of 25,473.40 to climb above the 25,700 mark, trading near 25,716.

Markets turned positive after Gor said that no country is as vital to Washington as India and confirmed that both sides are actively engaged in finalising a trade agreement. “Both sides continue to engage actively, and the next call on trade will take place tomorrow,” he said, signalling momentum in negotiations.

Adding to the optimism, Gor indicated that US President Donald Trump is expected to visit India within the next one to two years, reinforcing expectations of stronger bilateral ties.

Key drivers behind the market rebound

India–US trade deal hopes:

Speaking at a ceremony attended by US embassy officials, Gor described India as an indispensable partner for the US and expressed confidence that ongoing trade talks would reach a successful conclusion. Referring to the relationship between Prime Minister Narendra Modi and President Donald Trump, he said that while “real friends can disagree,” they ultimately resolve differences.

He also highlighted cooperation beyond trade, including security, counter-terrorism, energy, technology, education, and healthcare. Gor further announced that India would be invited to join the Pax Silica alliance as a full member next month.

Value buying after recent correction:

The rebound was also supported by value buying following five consecutive sessions of decline last week. Markets had been under pressure due to profit-taking, foreign portfolio investor outflows, concerns over potential additional US tariffs on Indian exports, and global geopolitical uncertainties.

Over the previous five trading sessions, the Sensex had fallen 2,185 points, or 2.54 percent, while the Nifty had declined 645 points, or 2.45 percent.

Despite lingering global risks, Monday’s sharp recovery underscored how quickly sentiment can shift on positive geopolitical and trade-related cues.