Markets rebound after 3-day slide on easing geopolitical tensions

Mumbai, Jan 22: Benchmark equity indices Sensex and Nifty rebounded on Thursday after three sessions of losses, tracking gains in global markets after US President Donald Trump struck a conciliatory tone on Greenland and hinted at a good trade deal with India.

Besides, a mild recovery in the rupee and a correction in global crude prices supported the domestic markets, traders said.

In a volatile session, the 30-share BSE Sensex climbed 397.74 points, or 0.49 per cent, to close at 82,307.37. During the day, the benchmark surged by 873.55 points, or 1.06 per cent, to hit an intraday high of 82,783.18, but failed to sustain higher levels due to selling pressure at elevated levels.

The 50-share NSE Nifty rose 132.40 points, or 0.53 per cent, to settle at 25,289.90. In the intraday session, the index appreciated by 278.25 points, or 1.10 per cent, to hit a high of 25,435.75. The trend clearly showed weak follow-through buying at higher zones.

“Buying interest emerged in the market following positive global cues amid signs of cooling geopolitical tension over Greenland. The EU nations agreed on a framework for control over Greenland with US President Trump, following which the US rolled back plans to impose additional 10 per cent tariffs on certain European countries.

“Further, there is renewed optimism over the India-US trade deal after Donald Trump’s positive comments on the agreement at the Davos Summit,” said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Among the 30 Sensex constituents, Bharat Electronics Ltd, Tata Steel, Adani Ports, State Bank of India, Bajaj Finserv, Asian Paints, Power Grid, Sun Pharmaceuticals, Kotak Mahindra Bank, IndiGo, Hindustan Unilever, HCL Technologies and NTPC were the gainers.

On the other hand, Eternal, Titan, ICICI Bank, Maruti Suzuki India, and HDFC Bank were among the laggards.

Indian equity markets ended Thursday with moderate gains after paring early advances, supported by positive global cues and easing geopolitical concerns.

“Sentiment improved following US President Donald Trump’s withdrawal of tariff threats against the EU and his optimistic remarks on a potential India-US trade deal, which encouraged short-covering and risk-taking,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.