US President Donald Trump has reached an understanding with Europe on the Greenland issue. As seen many times before, Trump has stepped back from his earlier hard position.
Threats of military action have been dropped
Tariff threats have also been withdrawn
This change in stance is expected to support global markets today.
At Davos, Trump told an Indian media outlet that the US would strike a good trade deal with India. He also praised Prime Minister Narendra Modi, calling him a good friend and an exceptional person.
These comments are likely to help market sentiment today.
The sharp rise in gold slowed yesterday.
Gold closed about 1 percent lower from higher levels
This morning, gold slipped below $4,800 per ounce
Silver closed more than 3 percent lower from recent highs
Silver is moving below $90 per ounce today
After a highly volatile session, Indian equities ended with small losses.
Benchmark indices fell around 0.3 percent
Broader market indices dropped over 1 percent
In GIFT City, GIFT Nifty rose to 25,390 in early trade but later slipped below 25,360. This points to a strong opening for the Nifty today.
At the World Economic Forum in Davos, Trump said the US would not take military action to seize Greenland. This helped US markets rise more than 1 percent.
After market hours, Trump announced a Greenland understanding on Truth Social, without sharing details.
According to a New York Times report:
The main deal involves giving land to the US to set up military bases in Greenland and some Danish Arctic islands
These areas will come under US control
Denmark and several European countries have accepted the agreement
NATO chief Mark Rutte was involved in the discussions
Trump’s representatives are holding talks today with:
Ukrainian President Volodymyr Zelensky
Russian President Vladimir Putin
Discussions focus on which parts of Ukraine may be ceded to Russia. Reports say the talks have a good chance of success. If a deal is reached, it could bring major changes globally and push markets sharply higher.
Asian markets opened strongly higher today.
South Korea’s December quarter GDP growth came in at 1.5 percent, below the expected 1.9 percent, due to weak investment and exports
Despite this, South Korea’s Kospi index hit a record high
Japan’s export growth slowed to 5.1 percent in December, but the Nikkei jumped 1.6 percent
Chinese and Hong Kong markets opened about 0.5 percent higher
After falling 2 percent on Tuesday, US markets rose more than 1 percent yesterday.
Dow Jones gained 588.64 points, or 1.21 percent
S&P 500 rose 1.16 percent
Nasdaq climbed 1.18 percent
US futures are trading higher this morning, with gains of 0.16 percent on the Dow, 0.32 percent on the S&P, and 0.47 percent on the Nasdaq.
Global developments, company results and a sharp fall in the rupee made Indian markets very volatile yesterday.
Markets fell sharply in the morning
Recovered by noon
Slipped again later in the session
Sensex swung nearly 1,300 points and Nifty moved about 380 points. Nifty slipped below 25,000 before recovering.
Benchmark indices ended with small losses, while mid cap and small cap stocks saw bigger declines. Except for metal and oil, all sectors closed lower. Consumer durables and banking stocks fell sharply.
Closing levels:
Sensex fell 270.80 points, or 0.33 percent, to 81,909.63
Nifty fell 75 points, or 0.30 percent, to 25,157.50
Bank Nifty dropped 603.90 points, or 1.02 percent, to 58,800.30
Mid cap 100 fell 1.14 percent
Small cap 100 fell 0.90 percent
On the BSE, 1,317 stocks rose and 2,968 fell
On the NSE, 1,076 stocks gained and 2,129 declined
817 stocks hit 52-week lows on the NSE
Foreign investors continued to sell, with net sales of ₹1,787.66 crore in the cash market. Domestic institutions bought shares worth ₹4,520.47 crore.
The sharp recovery from lower levels is seen as positive. However, the trend will change only if there is a strong follow-through today.
A fall below 24,900 could drag Nifty down to 24,400
A move above 25,300 could take Nifty towards the 25,500–25,600 zone
Support is seen at 24,980 and 24,900. Resistance is expected at 25,270 and 25,360.
Eternal, formerly Zomato, reported strong third-quarter results.
Revenue rose 20 percent quarter-on-quarter to ₹16,315 crore
Net profit jumped 56.9 percent to ₹102 crore
Profit margin improved from 1.8 percent to 2.3 percent
Founder Deepinder Goyal will step down as chief executive officer on February 1. Blinkit head Albinder Singh Dhindsa will take over as chief executive officer. Goyal will remain vice chairman and director and will focus on a wearable technology company that monitors the brain.
Waaree Energies reported a strong quarter, with revenue up 24.7 percent, operating profit up 37.2 percent and net profit up 26 percent. Margin improved to 25.5 percent.
Jindal Stainless posted 6.2 percent revenue growth year-on-year, while net profit jumped 26.6 percent.
Dr Reddy’s Laboratories reported a muted quarter. Revenue rose 4.4 percent, while net profit fell 14.5 percent year-on-year, though it beat analyst estimates. Margins declined compared to last year.
Hindustan Petroleum reported weak results despite lower crude prices. Revenue rose 14.2 percent, but net profit grew only 6.3 percent. Operating margin slipped to 6.1 percent.
Bank of India reported 6.5 percent growth in net interest income and a 7.5 percent rise in net profit. Asset quality showed a slight improvement.
PNB Housing Finance reported 12.8 percent growth in net interest income and a 10.6 percent rise in net profit.
Trump’s announcement of a Greenland deal pushed down precious metals.
Gold slipped from near $4,900 to close at $4,833.40
This morning, gold fell to $4,780 before recovering slightly
Silver fell from $95.99 to $93.23 and slipped to $91.27 today
In Kerala, 22-carat gold rose sharply yesterday, touching ₹1,15,320 per sovereign before closing at ₹1,14,840. With global prices falling, gold prices in Kerala are expected to drop today.
Industrial metals moved in different directions.
Aluminium rose 0.08 percent
Copper fell 1.24 percent
Lead, nickel and tin rose, while zinc declined
Rubber fell 0.50 percent in global markets. Cocoa dropped sharply, while coffee and palm oil gained.
As fears over Greenland eased, investors returned to US assets.
The dollar strengthened
Selling pressure in US bonds eased
Bond prices rose and yields fell
The dollar index closed at 98.76 and moved up to 98.79 this morning.
The 10-year US bond yield fell to 4.247 percent, while the 30-year yield slipped to 4.87 percent.
The Indian rupee fell to a record low due to a widening trade deficit and continued foreign investor selling.
The dollar closed at ₹91.70, up 72 paise
During the day, it touched ₹91.74
The Reserve Bank of India intervened in the market
Markets believe foreign investors will return only after clarity on an India–US trade deal. Trump’s comments may offer some support to the rupee today.
Crude oil prices rose again yesterday but eased slightly this morning.
Brent crude closed at $65.38 per barrel
This morning it slipped to $65.24
WTI traded at $60.67
Murban crude stood at $66.24
Natural gas prices jumped 30 percent to $5.2 due to colder weather in Europe and North America. Prices have risen 65 percent in three days.
Cryptocurrencies remained volatile.
Bitcoin rose to $90,000
Ether moved above $3,000
Solana climbed above $130
Sensex 81,909.63 (-0.33 percent)
Nifty 50 25,157.50 (-0.30 percent)
Bank Nifty 58,800.30 (-1.02 percent)
Mid cap 100 57,423.65 (-1.14 percent)
Small cap 100 16,551.20 (-0.90 percent)
Dow Jones 49,077.20 (+1.21 percent)
S&P 500 6,875.62 (+1.16 percent)
Nasdaq 23,224.80 (+1.18 percent)
Dollar ₹91.70
Gold (ounce) $4,833.40
Gold (sovereign) ₹1,14,840
Brent crude $65.38
