After days of relentless selling, Dalal Street finally saw relief. On January 12, 2026, benchmark indices ended the session sharply higher following a volatile day of trading.

At the close:

• Sensex finished at 83,878.17, up 301.93 points

• Nifty 50 ended at 25,790.25, gaining 106.95 points

Markets had fallen steeply in early trade, but strong intraday buying and short-covering helped lift indices from their lows.

What drove the rebound?

According to Vinod Nair of Geojit Investments, sentiment improved after positive remarks from the US Ambassador on an upcoming trade deal, boosting investor confidence ahead of the next round of negotiations.

Key sectors leading the rally:

• Metals and commodities surged on supply concerns and renewed buying

• Banking and consumer stocks saw value buying after recent corrections

• IT stocks added support to the rebound

• Precious metals continued to stay strong amid global geopolitical risks

Is this a new uptrend?

Market experts caution that while the rebound was strong, it was not broad-based. Volatility remains high, and many investors are still selective. For now, the rally is being seen as a relief bounce, with sustainability depending on:

• Global cues

• Trade negotiations

• Q3 corporate earnings