Stock Market Rebounds on Positive Global Cues
On January 22, the Indian stock market saw a positive turnaround as benchmark indices Sensex and Nifty bounced back after a three-day slump. This surge was fueled by gains in global markets, spurred by US President Donald Trump’s optimistic stance on Greenland and the potential for a favorable trade deal with India.
The recovery was also supported by a modest uptick in the rupee’s value and a decrease in global crude oil prices, which provided a boost to domestic traders.
Sensex and Nifty Performance
In a volatile trading session, the BSE Sensex rose by 397.74 points, closing at 82,307.37. The NSE Nifty also climbed by 132.40 points to settle at 25,289.90. Despite reaching intraday highs, both indices faced selling pressure at elevated levels, indicating a cautious approach from investors.
Factors Driving Market Sentiment
The positive momentum in the market was driven by encouraging global cues, particularly the easing of geopolitical tensions surrounding Greenland. The EU’s agreement with the US led to a rollback of proposed tariffs, boosting investor confidence. Furthermore, Trump’s favorable comments on the India-US trade deal at the Davos Summit added to the optimism.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd., highlighted the emergence of buying interest in response to these developments.
Top Gainers and Losers
Among the Sensex constituents, companies such as Bharat Electronics Ltd, Tata Steel, and State Bank of India witnessed gains, while others like Titan and HDFC Bank experienced declines. This mix of performances reflected the overall market dynamics on the day.
Market Outlook
Despite early gains being pared back, Indian equity markets closed with moderate gains, driven by positive global cues and reduced geopolitical concerns. Gaurav Garg, Research Analyst at Lemonn Markets Desk, noted that Trump’s reassurance on trade relations with the EU and India encouraged risk-taking behavior among investors.
Overall, the market’s response to external factors underscored the significance of global developments in shaping investor sentiment and driving market movements.
