Sensex, Nifty Rally Sharply as Greenland Tensions Ease, Boosting Market Sentiment
Markets rally on easing US–Europe trade tensions broader indices and key sectors outperform
India, Jan 22 : Indian equity benchmarks surged in early trade on Thursday after US President Donald Trump dialled down tariff threats against several European countries, easing concerns over a potential transatlantic trade conflict linked to Greenland.
At 9.25 am, the Sensex jumped 568 points, or 0.69 per cent, to 82,477, while the Nifty gained 160 points, or 0.64 per cent, to trade at 25,317.
Broader markets outperformed frontline indices, with the Nifty Midcap 100 rising 0.94 per cent and the Nifty Smallcap 100 climbing 1.01 per cent, reflecting improved risk appetite.
All sectoral indices were in positive territory. Auto, PSU banks, media and IT stocks led the rally, advancing 1.05 per cent, 0.89 per cent, 1 per cent and 0.80 per cent, respectively.
Market participants said immediate support for the Nifty is placed near the 25,000 level, while resistance is seen in the 25,250–25,300 zone.
Asian markets also rebounded after Trump indicated that the US would not impose tariffs on European nations over Greenland. Speaking at the World Economic Forum in Davos, Trump said force would not be used to acquire the Arctic island and added that he had “formed the framework of a future deal” with NATO Secretary General Mark Rutte.
Analysts said the retreat from tariff threats reduced fears of a US–Europe trade war, triggering a relief rally in global equities. The move could also prompt short-covering in domestic markets, as nearly two lakh short contracts are currently outstanding, they noted.
While some companies reported weaker Q3 profitability due to higher provisions linked to the new labour code, analysts believe the market may treat this as a one-time impact.
In the Asia-Pacific region, Japan’s Nikkei surged 1.87 per cent and South Korea’s Kospi rose 1.97 per cent, while China’s Shanghai and Shenzhen indices slipped 0.12 per cent each. Hong Kong’s Hang Seng Index edged down 0.08 per cent.
US markets ended higher in the previous session, with the Nasdaq rising 1.18 per cent, the S&P 500 gaining 1.16 per cent and the Dow Jones advancing 1.21 per cent.
On January 20, foreign institutional investors sold equities worth a net Rs 1,788 crore, while domestic institutional investors remained net buyers to the tune of Rs 4,520 crore.
