Indian Equities Edge Higher After Trump Eases Tariff Concerns - Sensex Up 50 Points, Nifty Gains 33 Points

Market Update at 12:20 PM: Indian equities were trading meaningfully higher on Thursday after U.S. President Donald Trump indicated he would not impose tariffs on EU nations on February 1, citing a “framework for a future deal” with NATO regarding Greenland. The development eased geopolitical worries and lifted sentiment across domestic markets.

By 12:00 PM, benchmark indices had come off their day’s highs but continued to trade with marginal gains. The BSE Sensex was up 50 points or 0.06 per cent at 81,959, while the Nifty50 advanced 33 points or 0.13 per cent to 25,190.

On the 30-share Sensex, Adani Ports, BEL and Tata Steel were among the Top Gainers. On the flipside, Eternal, HDFC Bank and ICICI Bank emerged as the major drags on the index.

The broader markets saw a mixed but positive trend. The Nifty MidCap 100 index rose 0.88 per cent, while the Nifty SmallCap 100 index gained 0.3 per cent. Within the broader space, Waaree Energies (up 10 per cent), Premier Energies, Bank of India, IRB Infra, Ashok Leyland, M&M Finance, MRPL, NCC, Anant Raj, Karur Vysya Bank and KFin Tech were among the prominent outperformers.

Sectorally, sentiment was largely constructive. Barring Nifty Realty and Private Bank indices, all other sectoral gauges were trading in the green. The Nifty PSU Bank index led the advance with gains of over 1.5 per cent.

Market Update at 10:20 AM: Indian shares are set to open higher on Thursday, tracking a rebound in global equities after U.S. President Donald Trump ruled out the use of force to seize Greenland and dropped plans for new tariffs on European allies. The shift in tone eased market jitters and lifted investor sentiment across regions.

Gift Nifty futures were trading at 25,338 as of 8:09 a.m. IST, indicating that the Nifty 50 could start the session above Wednesday’s close of 25,157.50. Other Asian markets rose around 1 per cent, following the overnight uptick on Wall Street after Trump stepped back from earlier tariff threats and clarified that force would not be used in the Greenland dispute

Speaking at the World Economic Forum in Davos, the U.S. President also suggested that a deal was within sight to resolve tensions over the Danish territory, helping calm global markets. As risk appetite improved, safe-haven gold eased after scaling a record peak in the previous session.

Back home, both the Nifty and Sensex, currently trading at three-month lows, have shed about 2 per cent each over the last three sessions amid concerns over Trump’s earlier Greenland-related escalation, risks of a renewed trade war with the European Union, persistent foreign selling and muted corporate earnings. The benchmarks are roughly 5 per cent below their all-time highs.

“While the improved global tone may help stabilise domestic markets after a few sessions of sharp selling, investors are likely to remain cautious,” said Ponmudi R, chief executive of Enrich Money. “A strong U.S. dollar and sustained foreign selling remain key overhangs, while earnings recovery has been slower than expected.”

Foreign portfolio investors (FPIs) have offloaded Indian equities worth USD 3.36 billion in January so far, following a record USD 19 billion of sales in 2025, keeping pressure on domestic markets.

Pre-Market Update at 7:47 AM: Indian equities are set for a positive opening on Thursday as global sentiment improved on easing geopolitical tensions over Greenland, strong overnight gains on Wall Street, and a firm tone across Asian markets. Gift Nifty was trading near the 25,320 level early Thursday, reflecting a premium of nearly 142 points over the previous Nifty futures close, indicating a gap-up start for the benchmark indices.

On Wednesday, domestic markets extended losses for the third straight session amid volatility. The Sensex declined 270.84 points, or 0.33 per cent, to close at 81,909.63, while the Nifty 50 slipped 75 points, or 0.30 per cent, to settle at 25,157.50. Persistent foreign institutional selling, mixed Q3 earnings, and a sharp fall in the Indian rupee dampened investor sentiment. 

Asian markets opened higher, tracking the overnight rally in the U.S. Japan’s Nikkei 225 gained 1.07 per cent and the Topix advanced 0.79 per cent. South Korea’s Kospi rose 1.62 per cent, breaching the 5,000 level, while the Kosdaq added 1.43 per cent. Hong Kong’s Hang Seng futures also indicated a positive start. Meanwhile, Gift Nifty trading around 25,320 signaled a firm opening for Indian benchmarks with a sizable premium over the previous session’s futures close.

Wall Street recorded a strong session as investors welcomed signs of a Greenland agreement, helping avert the possibility of new U.S. tariffs on Europe. The Dow Jones Industrial Average rallied 588.64 points, or 1.21 per cent, to 49,077.23. The S&P 500 surged 78.76 points, or 1.16 per cent, to 6,875.62, marking its biggest one-day gain in two months. The Nasdaq Composite rose 270.50 points, or 1.18 per cent, to end at 23,224.83.

Chip stocks led gains in the U.S. as Nvidia rose 2.87 per cent, AMD jumped 7.71 per cent, and Intel surged 11.72 per cent. Netflix slipped 2.2 per cent, while United Airlines gained 2.2 per cent. Halliburton advanced 4.1 per cent, EQT Corp climbed 6.5 per cent, and Expand Energy gained 4.5 per cent.

On the geopolitical front, President Donald Trump announced that a framework agreement on Greenland had been reached and that he would not impose tariffs on European allies on 1 February as earlier planned. However, the European Parliament decided to suspend work on a trade deal with the United States after repeated U.S. requests related to Greenland, according to Reuters.

In separate trade developments, Trump expressed optimism on the proposed India–U.S. Bilateral Trade Agreement (BTA), referring to Prime Minister Narendra Modi as a close friend and suggesting both sides were “going to have a good deal.” Meanwhile, EU Foreign Policy Chief Kaja Kallas stated that the European Union had agreed with India to move ahead with a new security and Defence partnership.

Japan’s trade data showed exports rising for a fourth straight month in December, increasing 5.1 per cent year-on-year after a 6.1 per cent rise in November. Imports grew 5.3 per cent year-on-year, resulting in a trade surplus of 105.7 billion yen (USD 667.13 million), below market expectations of a 356.6 billion yen surplus.

Commodity markets reacted to cooling geopolitical tensions with both gold and silver prices declining. Gold fell 0.8 per cent to USD 4,793.96 per ounce and silver dropped 1.3 per cent to USD 91.86 per ounce. Crude oil was mostly steady, with Brent up 0.49 per cent at USD 65.24 per barrel and U.S. WTI crude down 0.15 per cent at USD 60.53 per barrel.

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Disclaimer: The article is for informational purposes only and not investment advice.