The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, following upbeat global market cues, after signs of cooling geopolitical tension over Greenland.
Asian markets traded higher, while the US stock market rallied overnight, with the S&P 500 posting its biggest one-day percentage gain in two months, after President Donald Trump backed down on his threats to impose tariffs on European countries over Greenland.
On Wednesday, the Indian stock market ended lower amid high volatility, extending losses to the third consecutive session, amid heightened geopolitical uncertainties, relentless FII selling, and mixed Q3 earnings.
The Sensex declined 270.84 points, or 0.33%, to close at 81,909.63, while the Nifty 50 settled 75.00 points, or 0.30%, lower at 25,157.50.
“A sharp depreciation in the Indian rupee to fresh lows further dampened sentiment, especially in the absence of any meaningful positive surprise from the earnings season. Continued foreign institutional selling added to the pressure, keeping overall risk appetite subdued and market activity largely stock-specific,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Here are key global market cues for Sensex today:
Asian Markets
Asian markets traded higher on Thursday, following overnight rally on Wall Street. Japan’s Nikkei 225 rose 1.07%, while the Topix gained 0.79%. South Korea’s Kospi rose 1.62%, breaching the 5,000 mark, and the Kosdaq index rallied 1.43%. Hong Kong Hang Seng index futures indicated a higher opening.
Gift Nifty Today
Gift Nifty was trading around 25,320 level, a premium of nearly 142 points from the Nifty futures’ previous close, indicating a gap-up start for the Indian stock market indices.
Wall Street
US stock market ended higher on Wednesday as investors cheered the framework of the Greenland deal and the possibility of new US tariffs on European allies had been averted.
The Dow Jones Industrial Average rallied 588.64 points, or 1.21%, to 49,077.23, while the S&P 500 gained 78.76 points, or 1.16%, to 6,875.62. The Nasdaq Composite closed 270.50 points, or 1.18%, higher at 23,224.83.
Nvidia stock price gained 2.87%, AMD shares jumped 7.71%, Intel share price surged 11.72%, while Netflix stock price fell 2.2%. United Airlines shares rose 2.2%, Halliburton stock rallied 4.1%, EQT Corp shares advanced 6.5% and Expand Energy share price gained 4.5%.
Greenland Deal
President Donald Trump said that a framework for an agreement on Greenland had been reached and he will not be imposing the Tariffs on European allies that were scheduled to go into effect on February 1st.
US-EU Trade Deal
The European Parliament decided to suspend its work on a trade deal between the 27-member bloc and the United States, following US President Trump’s repeated requests to take control over Greenland, Reuters reported.
India-US Trade Talks
Donald Trump struck an optimistic note on the proposed India–US Bilateral Trade Agreement (BTA), saying the two countries were “going to have a good deal,” while praising Prime Minister Narendra Modi as a close friend and respected global leader.
India-EU Trade Talks
The European Union has agreed with India to proceed with the signature of a new security and defence partnership between the two parties, EU Foreign Policy Chief Kaja Kallas said.
Japan Exports
Japan’s exports rose for a fourth straight month in December. Total exports by value rose 5.1% year-on-year (YoY) in December after a 6.1% rise in November. Imports grew 5.3% YoY. As a result, Japan ran a trade surplus of 105.7 billion yen ($667.13 million), compared with the forecast of a surplus of 356.6 billion yen.
Gold Prices
Gold and silver prices fell after cooling tensions over Greenland. Gold price declined 0.8% to $4,793.96 an ounce, while silver price fell 1.3% to $91.86.
Crude Oil Prices
Crude oil prices steadied as geopolitical tensions over Greenland cooled. Brent crude oil rose 0.49% to $65.24 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.15% to $60.53.
(With inputs from Reuters)
