The Indian benchmark indices ended higher as the Sensex closed trade at 82,307.37 rising over 397 points and the Nifty ended above 25,289 rising more than 132 points at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks such as Bharat Electronics, Adani Ports, Tata Steel, State Bank of India and Bajaj Finserv. Meanwhile, the laggards included stocks like HDFC Bank, Maruti, ICIC Bank, Titan and Eternal.
In the broader markets, the Nifty Microcap 250 gained 1.56 per cent as volatility declined. Sectorally, the Nifty Media index rose 2.39 per cent and the Nifty Realty fell 0.74 per cent.
Previously, during the morning session, the BSE Sensex surged 774.04 points, or 0.94 per cent, to 82,683.67, while the NSE Nifty advanced 233.85 points, or 0.93 per cent, to 25,391.35 in early trade.
President Donald Trump’s recalibration on Greenland and a softer stance on Europe lifted global market sentiment, triggering expectations of a relief rally, while Asian equities traded mixed and institutional flows remained divergent.
Trump Softens Greenland, Tariff Stance
US President Donald Trump has stepped back from his earlier threat to “annex Greenland by force, if necessary”. Speaking in Davos on Wednesday, he said, “we have reached a framework of a future deal on Greenland.” More significantly for markets, Trump indicated that the US would “refrain from imposing tariffs on Europe”, easing fears of a US–Europe trade war that had weighed heavily on sentiment.
Relief Rally Likely On Short-Covering
The shift in tone has set the stage for a relief rally, according to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd. He said the market construct is favourable for short-covering, noting that around two lakh short contracts are currently outstanding. “The consequent relief rally in the market on Thursday can be significant,” he said.
Q3 Earnings Impact Seen As Transitory
Vijayakumar also pointed out that third-quarter profitability has been affected by higher provisions linked to new labour code commitments. However, he said the market is likely to look past this impact, as it represents a one-time adjustment.
Global Markets
Broader Asian markets were trading on a mixed note. Japan’s Nikkei 225 and South Korea’s Kospi were trading higher, while China’s Shanghai SSE Composite and Hong Kong’s Hang Seng were quoted lower. US equity markets closed higher in overnight trade on Wednesday, adding to the positive global cues.
Institutional Flows Diverge
Foreign institutional investors (FIIs) offloaded equities worth Rs 1,787.66 crore on Wednesday, according to exchange data. In contrast, domestic institutional investors (DIIs) bought shares worth Rs 4,520.47 crore.
Oil Prices Edge Up
Brent crude, the global oil benchmark, rose 0.14 per cent to USD 65.33 per barrel.
