Sensex, Nifty Post Strong Gains As Geopolitical Tensions Ease Over Greenland

(MENAFN- IANS) Mumbai, Jan 22 (IANS) The Indian benchmark indices posted strong gains in early trade on Thursday, after US President Donald Trump walked back on his tariff threats against eight European countries over Greenland ownership.

As of 9.25 am, the Sensex added 568 points, or 0.69 per cent to reach 82,477 and the Nifty advanced 160 points, or 0.64 per cent to 25,317.

Main broadcap indices overperformed the benchmark indices, with the Nifty Midcap 100 adding 0.94 per cent, and the Nifty Smallcap 100 advancing 1.01 per cent.

All sectoral indices were trading in the green, with Nifty auto, PSU bank, media and IT being the notable gainers - up 1.05 per cent, 0.89 per cent, 1 per cent and 0.80 per cent, respectively.

Immediate support lies at 25,000 zone, while resistance is now anchored near 25,250–25,300 zone, market watchers said.

Asia-Pacific markets rebounded after Trump informed that tariffs won't be imposed on European countries over Greenland.

At the World Economic Forum (WEF) in Davos, Trump said that force would not be used to acquire the Arctic island, adding that he had“formed the framework of a future deal with respect to Greenland,” with NATO Secretary General Mark Rutte.

Analysts said that Trump's message that the US would“refrain from imposing tariffs on Europe” retracts threat of a US-Europe trade war which was dragging the markets down.

The consequent relief rally in the market could be significant since two lakh short contracts are lying in the market, with the market construct appropriate for a short-covering, they said.

Though the Q3 profitability of companies was negatively impacted by higher provision for the new labour code commitments, the market will shrug it off as a one time factor, an analyst added.

In Asian markets, China's Shanghai index lost 0.12 per cent, and Shenzhen eased 0.12 per cent, Japan's Nikkei added 1.87 per cent, while Hong Kong's Hang Seng Index dropped 0.08 per cent. South Korea's Kospi added 1.97 per cent.

The US markets ended in the green in the last trading session as Nasdaq advanced 1.18 per cent. The S&P 500 gained 1.16 per cent, and the Dow added 1.21 per cent.

On January 20, foreign institutional investors (FIIs) in India sold net equities worth Rs 1,788 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 4,520 crore.

-IANS

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