Indian benchmark indices experienced a volatile trading session on Thursday, January 22. The Sensex opened at 82,459.66, climbed to an intraday high of
82,783.18, but later pared gains to slip to a low of 81,915.85. Market sentiment was initially supported by a positive response from US President Donald Trump on Greenland, which lifted equities, before profit-booking after the rally triggered a pullback. Additionally, the sharp rally in the market added nearly Rs 7 lakh crore to investor wealth in a single session, with the total market capitalisation of BSE-listed companies climbing to about Rs 461 lakh crore from Rs 454 lakh crore in the previous session. At 2:23 pm, the Sensex jumped 112.92 points or 0.14 per cent to reach 82,022, while Nifty rose 45.60 points or 0.18 per cent to reach 25,203. Why did The Indian Stock Market Rose Today? Several domestic and global triggers came together to drive the rebound in Indian equities. Global markets saw a relief rally after Trump softened his stance on imposing tariffs on Europe. Trump backed away from earlier threats after outlining a framework with NATO on Greenland’s future, following discussions with NATO Secretary General Mark Rutte at the World Economic Forum in Davos. Trump’s shift in tone helped calm markets that had been under pressure due to fears of a full-blown trade war between the US and the European Union and its broader impact on global growth. “Trump's message that the US would 'refrain from imposing tariffs on Europe' takes away the threat of a US-Europe trade war, which was dragging the markets down,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. One additional reason is also the optimism around an India–US trade deal. Trump expressed admiration for Prime Minister Narendra Modi and confidence that the two countries were moving towards a favourable deal. “I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine, and we are going to have a good deal,” Trump said. Q3 earnings have also been largely in line with the market expectations, making the sentiments more stable. “The Q3 profitability of companies has been affected by higher provisions for the new labour code commitments. But the market will shrug it off since this is a one-time commitment. Among the results announced yesterday, Eternal stands out with better-than-expected revenue and profit growth from the quick commerce business,” Vijayakumar said. Why Market Fell Sharply After The Resboud? The Stock Market fall was largely triggered by the profit booking after the indices showed an exceptional rally in the early trade. Additionally, FIIs continued to remain net sellers, while volatility indicators flashed warning signs. Foreign investors sold Rs 1,788 crore worth of equities on January 21, even as domestic institutional investors provided support. “Flows continue to be a key driver. FIIs remain net sellers, exerting pressure on benchmark indices,” said Aakash Shah, Technical Research Analyst, Choice Broking, according to a Moneycontrol report. India VIX also rose nearly 4 per cent on January 22, signalling elevated market stress and the potential for sharp intraday swings. Heavyweight stocks such as HDFC Bank and ICICI Bank traded marginally lower, while sectors like real estate and midcaps underperformed, highlighting the fragile nature of the recovery.
