Pre-Market Update:
Indian equities are set for a positive opening on Thursday as global sentiment improved on easing geopolitical tensions over Greenland, strong overnight gains on Wall Street, and a firm tone across Asian markets.
Gift Nifty was trading near the 25,320 level early Thursday, reflecting a premium of nearly 142 points over the previous Nifty futures close, indicating a gap-up start for the benchmark indices.
On Wednesday, domestic markets extended losses for the third straight session amid volatility. The Sensex declined 270.84 points, or 0.33 per cent, to close at 81,909.63, while the Nifty 50 slipped 75 points, or 0.30 per cent, to settle at 25,157.50. Persistent foreign institutional selling, mixed Q3 earnings, and a sharp fall in the Indian rupee dampened investor sentiment.
Asian markets opened higher, tracking the overnight rally in the U.S. Japan's Nikkei 225 gained 1.07 per cent and the Topix advanced 0.79 per cent. South Korea's Kospi rose 1.62 per cent, breaching the 5,000 level, while the Kosdaq added 1.43 per cent. Hong Kong's Hang Seng futures also indicated a positive start. Meanwhile, Gift Nifty trading around 25,320 signaled a firm opening for Indian benchmarks with a sizable premium over the previous session's futures close.
Wall Street recorded a strong session as investors welcomed signs of a Greenland agreement, helping avert the possibility of new U.S. tariffs on Europe. The Dow Jones Industrial Average rallied 588.64 points, or 1.21 per cent, to 49,077.23. The S&P 500 surged 78.76 points, or 1.16 per cent, to 6,875.62, marking its biggest one-day gain in two months. The Nasdaq Composite rose 270.50 points, or 1.18 per cent, to end at 23,224.83.
Chip stocks led gains in the U.S. as Nvidia rose 2.87 per cent, AMD jumped 7.71 per cent, and Intel surged 11.72 per cent. Netflix slipped 2.2 per cent, while United Airlines gained 2.2 per cent. Halliburton advanced 4.1 per cent, EQT Corp climbed 6.5 per cent, and Expand Energy gained 4.5 per cent.
On the geopolitical front, President Donald Trump announced that a framework agreement on Greenland had been reached and that he would not impose tariffs on European allies on 1 February as earlier planned. However, the European Parliament decided to suspend work on a trade deal with the United States after repeated U.S. requests related to Greenland, according to Reuters.
In separate trade developments, Trump expressed optimism on the proposed India-U.S. Bilateral Trade Agreement (BTA), referring to Prime Minister Narendra Modi as a close friend and suggesting both sides were 'going to have a good deal.' Meanwhile, EU Foreign Policy Chief Kaja Kallas stated that the European Union had agreed with India to move ahead with a new security and Defence partnership.
Japan's trade data showed exports rising for a fourth straight month in December, increasing 5.1 per cent year-on-year after a 6.1 per cent rise in November. Imports grew 5.3 per cent year-on-year, resulting in a trade surplus of 105.7 billion yen (USD 667.13 million), below market expectations of a 356.6 billion yen surplus.
Commodity markets reacted to cooling geopolitical tensions with both gold and silver prices declining. Gold fell 0.8 per cent to USD 4,793.96 per ounce and silver dropped 1.3 per cent to USD 91.86 per ounce. Crude oil was mostly steady, with Brent up 0.49 per cent at USD 65.24 per barrel and U.S. WTI crude down 0.15 per cent at USD 60.53 per barrel.
For today, Sammaan Capital and Bandhan Bank will remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.
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