The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Thursday, following upbeat overnight global market cues, after signs of cooling geopolitical tension over Greenland.

Moreover, the asian markets traded higher, while the US stock market rallied overnight, with the S&P 500 posting its biggest one-day percentage gain in two months, after President Donald Trump backed down on his threats to impose tariffs on European countries over Greenland.

However, on Wednesday, the Indian stock market ended lower amid high volatility, extending losses to the third consecutive session, amid heightened geopolitical uncertainties, relentless FII selling, and mixed Q3 earnings.

Domestic Market Recap

On Wednesday, Indian indices closed in the red:

• Sensex slumped by 270.84 points (0.33%) to close at 81,909.63
• Nifty 50 moved down by 75 points (0.30%) to settle at 25,157.50

Gift Nifty

Gift Nifty was trading near 25,320, around 142 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

The US stock market closed higher on Wednesday as investors welcomed the framework of the Greenland deal and took relief from the easing risk of new US tariffs on European allies.

• The Dow Jones Industrial Average soared by 588.64 points (1.21%) to close at 48,077.23.
• S&P 500 up by 78.76 points (1.16%), ending at 6,875.62.
• The Nasdaq Composite was higher by 270.50 points (1.18%), finishing at 23,224.83.

Gold Prices

• Spot gold was trading 0.20% higher at $4,824.69 per ounce.
• The US gold futures were lower by 0.22% at $4,826.75.

Crude Oil Prices

• Brent crude gained by 0.49% to $65.24/barrel
• US West Texas Intermediate (WTI) crude was trading 0.15% lower at $60.53/barrel

Overnight Major Global Events Driving Sentiment

1. India–India–US Trade Talks: US President Donald Trump struck an upbeat tone on the proposed India–US Bilateral Trade Agreement, saying both countries would seal a strong deal. He also praised Prime Minister Narendra Modi as a close friend and a widely respected global leader.
2. India–EU Trade Talks: The European Union agreed with India to move ahead with signing a new security and defence partnership, EU Foreign Policy Chief Kaja Kallas said.
3. US–EU Trade Deal: The European Parliament paused its work on a trade agreement with the United States after President Trump repeatedly sought control over Greenland, according to a Reuters report.
4. Greenland Deal: President Donald Trump said the two sides have reached a framework agreement on Greenland and confirmed that he will not impose tariffs on European allies that were due to take effect on February 1.
5. Japan Exports: Japan extended its export growth streak to a fourth straight month in December, with exports rising 5.1% year-on-year after a 6.1% increase in November. Imports climbed 5.3% year-on-year, resulting in a trade surplus of 105.7 billion yen ($667.13 million), lower than the expected surplus of 356.6 billion yen.

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