After three days of decline, there was a strong rise in the domestic stock markets on Thursday. Major benchmark indices opened with significant gains. Sensex opened 600 points higher, while Nifty was trading 170 points higher. Buying was seen in 47 out of 50 Nifty stocks. Bank Nifty was trading at 59,207, up 407 points. Nifty Midcap Select was up 156 points, while Nifty Smallcap 100 was up 186 points. Strong buying was seen in PSU bank and auto indices. Compared to the previous closing price, the Sensex opened 550 points higher at 82,459. Nifty opened 187 points up at 25,344. Bank Nifty opened 394 points higher at 59,194, and in the currency market, the rupee opened 17 paise stronger at 91.53/$.
What are the triggers for the market?
Donald Trump’s positive signals in Davos have boosted sentiment in global markets. After Trump’s statements, GIFT Nifty is trading above 25300, up almost 150 points. Dow futures are up nearly 80 points ahead of the release of Q3 GDP data today, while in Asian markets, Japan’s Nikkei is trading up nearly 600 points. Global signals are indicating a strong start for the domestic market.
American markets heaved a sigh of relief after Trump backed down from his threat to impose tariffs on European countries over Greenland. Trump has canceled the 10 percent tariff imposed on 8 European countries from February 1. Following this, strong buying was seen on Wall Street, with the Dow Jones closing nearly 600 points higher, while the Nasdaq also gained nearly 270 points. Trump made clear that there would be no military action to take Greenland, and after meeting with the NATO Secretary General a framework for an agreement was established.
Positive news also came from Davos about the India-US trade agreement. Trump said that a good trade agreement with India will be finalized soon. Praising Prime Minister Narendra Modi, he said that PM Modi is a good friend and he respects him a lot. Trump’s soft stance on tariffs after facing opposition from European countries is being considered helpful for global trade sentiment.
Rise in gold and silver prices
A lot of movement is also being seen in the commodity market. On MCX, gold rose by nearly ₹2300 to hit a life-time high of ₹1,58,475 per 10 grams, while silver was trading slightly lower after hitting a record high of ₹3,35,521 per kg. In the international market, gold remains around its all-time high of $4900, indicating safe-haven demand.
On the flows front, FIIs continued selling in the cash segment for the 12th consecutive day, although net selling due to buying in stock futures stood at only around ₹846 crore. On the other hand, domestic institutional investors continued buying for the 101st consecutive day, investing around ₹4520 crore in the market and providing strong support.