Mumbai/IBNS, Jan. 12 -- Indian equity markets rallied on Monday after newly appointed US Ambassador to India Sergio Gor gave a positive update on the ongoing India-US trade deal negotiations, describing India as the White House's most important ally, media reports said.

Speaking after assuming charge, Gor said there was "no other country more important as an ally than India", underlining Washington's commitment to strengthening bilateral ties.

Following the remarks, market sentiment improved sharply with Sensex recovering all its losses last week and inching ahead by around 100 points.

The NSE Nifty 50, which had remained in the red for six consecutive sessions, recovered nearly 200 points during the session and was last trading around...