The Indian markets opened on a strong note on Thursday, breaking a three‑day losing streak, as global sentiment turned sharply positive following key geopolitical
and economic developments. The Nifty 50 jumped 0.74 per cent at the open to 25,344.15, while the Sensex rose 0.67 per cent to 82,459.66 before both indices briefly extended gains to nearly 1 per cent. Although they later pared some momentum, trading 0.44 per cent and 0.38 per cent higher respectively by 10:38 AM, the undertone in the market remains upbeat. Six major global cues are driving the rally, including constructive and confidence‑boosting meetings in Davos that eased immediate geopolitical concerns, the US suspending planned tariffs on the EU under a developing Arctic‑Greenland deal framework, strengthening cooperation between the US, NATO and Greenland reducing risk sentiment. Another reason aiding market is the Indian rupee showing signs of stability and improvement, and a decline in safe‑haven asset prices, indicating a shift back into equities as investors embrace risk-on sentiment.
Davos WEF Meeting
Both, US benchmark indices and domestic benchmark indices gained after a sense of calm emerged following the Davos discussions, with Trump signalling progress toward a long‑term strategic pact among Western Arctic allies. He said the proposed agreement would strengthen US security interests, covering missile defense, access to critical minerals, and efforts to curb Russian and Chinese influence in the region. While he suggested the deal would leave all parties in a stronger position, he did not reveal specific details.
US Markets stable
US markets ended higher in overnight deals on Wednesday. The S&P 500 climbed 1.2 per cent, marking its strongest gain since November, with all major sectors advancing and the index returning to positive territory for 2026. Energy stocks led the rally, while small‑cap shares also surged. Big‑tech names also posted solid gains, as per Bloomberg.
Brent crude, the global oil benchmark, rose 0.14 per cent to USD 65.33 per barrel.
Trump rolls back tariffs on EU
During his Davos visit, Trump said that the US and NATO have formed the framework of a future deal concerning Greenland and the wider Arctic region, and that he would suspend tariffs that were scheduled to take effect on February 1.
In a post on his Truth Social platform, Trump said the understanding followed what he described as a “very productive meeting” with NATO Secretary General Mark Rutte. He said the proposed arrangement, if finalised, would benefit the United States and all NATO nations. Trump added that discussions were also underway on the “Golden Dome” missile defence concept as it relates to Greenland.
Nifty defends 200 DMA Level
On Wednesday, Indian benchmark indices Sensex and Nifty 50 extended their decline for a third consecutive session amid escalating geopolitical tensions and continued foreign fund outflows. After recovering most of its steep intraday losses, the Nifty managed to hold above its 200‑DMA at 25,000, closing 75 points, or 0.30 per cent lower, at 25,157.50. The index had briefly slipped below the key level, touching an intraday low of 24,919.80. The BSE Sensex also ended in the red, losing 270.84 points, or 0.33 per cent, to finish at 81,909.63.
Technical analyst Kunal Bothra, speaking on market performance, had earlier said that Wednesday's slide was triggered when the index “managed to break below the 200‑day moving average,” calling it “a very important support in terms of technical power lines.” He added that this breakdown also “coincided with the 25,000 mark for the index,” a level he described as significant because “option writers generally tend to have a hub in terms of option writing.”
Safe-haven metals decline
Gold and silver prices pulled back from record highs on Thursday (January 22) as safe‑haven demand weakened following US President Donald Trump’s announcement that he would suspend the planned Greenland‑related tariffs.
Gold prices were trading 1.2 per cent, or Rs 1,796 lower, at Rs 1,51,066, and silver prices were trading at Rs 3,11,708, down Rs 6,784 points or 2.13 per cent. Declining safe-haven demand typically weighs on gold prices, as investors shift away from low-risk assets during periods of reduced geopolitical uncertainty.
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Rupee strengthens
The rupee marginally strengthened against the American currency after hitting a record low of Rs 91.74 in the previous session.
"AfterTrump’s speech in Davos in which he avoided confrontation with European Nations to some extent and also said that a framework has been reached on Greenland the US Equities rebounded and today Asian equities are up giving some relief on INR with rupee rebounding towards 91.45 levels, said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
Rupee rebounded from its all-time low levels and gained 15 paise to trade at 91.50 against the U.S. dollar in early deals on Thursday.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
