Mumbai/IBNS, Jan. 12 -- The Indian stock market on Monday erased last week's losses, with benchmark indices closing higher amid optimism over India-US trade talks.

Markets snapped a losing streak 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.

"So it's not an easy task to get this across the finish line, but we are determined to get there. While trade is very important for our relationship, we will continue to work closely together on other critical areas such as security, counter-terrorism, energy, technology, education and health," he added.

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