(Adds details on market activity, updates prices to close)
* TSX ends down 5.48 points, or 0.03 percent, at 16,347.98
* Four of the index's 10 main groups end lower
* Industrials and materials both fall 0.6 percent
* Home Capital Group Inc climbs 10.5 percent
TORONTO, Jan 22 (Reuters) - Canada's main stock index edged lower on Monday as railroad and materials shares declined, offsetting gains for the energy group, which was supported by higher oil prices.
* The Toronto Stock Exchange's S&P/TSX composite index fell 5.48 points, or 0.03 percent, to 16,347.98.
* The modest decline came ahead of the resumption of talks on Tuesday to renegotiate the North American Free Trade Agreement.
* Losses for the index were pared as stocks on Wall Street reached record highs after a deal by U.S. senators to end the federal government shutdown.
* The industrials group, which includes railroad stocks, declined 0.6 percent. Canadian National Railway Co, which is due to report fourth-quarter earnings on Tuesday, fell 1.6 percent to C$99.39, while Canadian Pacific Railway Ltd was down 0.8 percent at C$231.66.
* The materials group, which includes precious and base metals miners and fertilizer companies, also lost 0.6 percent.
* Teck Resources Ltd declined 1.4 percent to C$36.27, while Franco-Nevada Corp, which acquired an additional precious metals stream at the Cobre Panama mining project, fell 3.4 percent to C$94.51.
* Gold futures fell 0.3 percent to $1,328.4 an ounce.
* Just four of the index's 10 main groups ended lower
* The energy group gained 0.4 percent as oil prices rose. U.S. crude oil futures settled 0.4 percent higher at $63.62 a barrel.
* The largest percentage gainer on the TSX was Home Capital Group Inc, which climbed 10.5 percent after TD Securities raised its target price on the stock to C$21 from C$17.
* The overall financial services group, which accounts for more than one-third of the TSX's weight, rose 0.1 percent. It was helped by gains for some of the country's major banks, with Toronto-Dominion Bank advancing 0.5 percent to C$74.41.
* Among the most active Canadian stocks by volume was Aurora Cannabis, which rose 7.6 percent to $14.50 after Reuters reported on Friday that the marijuana producer was in talks to buy CanniMed Therapeutics Inc and Newstrike Resources Ltd in a friendly deal.
* Investors are betting Canada's smaller financial firms could see a jump in revenues after they helped fund marijuana companies ahead of the country's planned legalization of the drug this year. (Reporting by Fergal Smith; Editing by Andrea Ricci and Peter Cooney)