On Monday, January 12, 2026, Indian equity markets saw considerable volatility, with benchmark indices experiencing notable declines in early trading. The BSE Sensex initially plunged by nearly 400 points, falling to 83,177.94 by mid-morning, while the NSE Nifty50 dipped below the crucial 25,600 level, trading at 25,600 at 9:20 AM and reaching an intraday low of 25,529. This early downturn was attributed to a combination of weak global cues, geopolitical tensions, and ongoing concerns over global trade and political uncertainty in Washington. Many analysts highlighted foreign fund exits and general market caution as contributing factors to the sustained selling pressure observed for the sixth consecutive session. However, the market demonstrated a significant recovery towards the close of the trading day. The Sensex erased its earlier losses and eventually settled 301.93 points higher at 83,878.17. Similarly, the Nifty50, after briefly dipping below 25,500, rebounded to gain 106.95 points, closing at 25,790.25. This strong comeback was partly influenced by the narrowing of early losses following comments from the incoming U.S. ambassador to India regarding upcoming trade discussions. While the initial claims of a fall were accurate for an intraday snapshot, the market's robust recovery showcases its resilience amidst fluctuating global sentiments.