Mumbai’s stock markets posted strong gains in early trade on Thursday, driven by easing geopolitical tensions over Greenland.
As of 9:25 AM, the Sensex rose 568 points, or 0.69 per cent, to 82,477, while the Nifty advanced 160 points, or 0.64 per cent, to 25,317.
The broader markets outpaced benchmark indices, with the Nifty Midcap 100 climbing 0.94 per cent and the Nifty Smallcap 100 gaining 1.01 per cent.
Sectoral indices also traded firmly in the green, led by Nifty Auto (up 1.05 per cent), PSU Bank (0.89 per cent), Media (1 per cent) and IT (0.80 per cent). Analysts identified immediate support at the 25,000 level and resistance near 25,250–25,300.
Relief from the Greenland Dispute
Asian markets rebounded after US President Donald Trump announced at the World Economic Forum in Davos that the United States would not impose tariffs on European countries over Greenland.
Donald Trump also confirmed that the United States would not use force to acquire the Arctic island and said that he had formed a framework deal with NATO Secretary General Mark Rutte regarding Greenland’s strategic role.
Experts noted that the announcement eased fears of a US-Europe trade war, which had weighed on investor sentiment. The relief rally was reinforced by a market structure conducive to short-covering, with around two lakh short contracts in play.
Analysts suggested that markets would treat the impact of higher provisions under the new labour code on Q3 company profitability as a one-off and shrug it off.
Elsewhere in Asia, China’s Shanghai and Shenzhen indices slipped 0.12 per cent each, while Japan’s Nikkei surged 1.87 per cent. Hong Kong’s Hang Seng fell 0.08 per cent, and South Korea’s Kospi rose 1.97 per cent. In the US, Nasdaq gained 1.18 per cent, the S&P 500 added 1.16 per cent, and the Dow rose 1.21 per cent in the previous session.
On January 20, foreign institutional investors (FIIs) sold equities worth Rs 1,788 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 4,520 crore, reflecting strong local demand supporting the market rally.
Also Read: Sensex, Nifty Extend Decline As Global Tensions Keep Markets On Edge
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