Sensex settles 400 pts higher, Nifty ends near 25,300: Trump's remarks on India-US trade deal among key factors behind market rise

The domestic cement sector continues to maintain a positive trajectory, with industry expecting a steady 6-8 percent growth rate.

The benchmark equity indices Sensex and Nifty settled higher on Thursday, tracking positive global cues and improved investor sentiment amid easing geopolitical concerns and India-US trade deal hopes.

The Sensex settled at 82,307.37, up 397.73 points or 0.49 percent, while the broader Nifty was at 25,289.90, up 132.40 points or 0.53 percent.

Dr. Reddy's Laboratories, Coal India and Adani Ports and Special Economic Zone were among the top gainers in the Nifty50 pack, rising up to 5 percent, while SBI Life Insurance Company and ETERNAL were among the major laggards, declining up to 2 percent. Market breadth was positive as about 2668 shares advanced, 871 shares declined and 153 shares unchanged.

Key factors behind market rise

1) Trump's Greenland climbdown: The sentiment improved after US President Donald Trump withdrew his threat to impose tariffs on EU countries over their stance on Greenland. Trump said he had reached the outlines of a framework with NATO on the island’s future and would not go ahead with the tariffs scheduled for February 1. The move helped ease fears of a wider trade conflict gloablly.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the withdrawal of tariff threats had removed concerns of a potential US-Europe trade war. "The consequent relief rally in the market today can be significant since there are about two lakh short contracts in the market and the market construct is right for short-covering," he said.

2) India-US trade deal hopes: Investor sentiment was also supported by optimism around India-US trade talks. In an exclusive comment to Moneycontrol, Trump signalled optimism on India-US trade talks and said "we're going to have a good deal (with India)".

🚨🚨 Moneycontrol Mega Exclusive | "I have great respect for your Prime Minister. He’s a fantastic man and a friend of mine… We are going to have a good deal."

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~ US President Donald Trump tells @chandrarsrikant on the sidelines of #Davos2026, expressing optimism over an… pic.twitter.com/TWGkOnhnrA — Moneycontrol (@moneycontrolcom) January 21, 2026

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3) Positive global cues: Positive cues from Asian markets further aided the rally. Japan’s Nikkei 225 and South Korea’s Kospi were trading higher, while US markets ended on a firm note overnight on Wednesday.

4) India Vix eases: The India VIX, a gauge of market volatility, fell 1.58 percent to 13.56. A lower VIX typically reflects reduced uncertainty and supports risk-taking in equity markets.

5) Rupee recovers: The rupee also recovered from record low levels, gaining 15 paise to trade at 91.50 against the US dollar in early trade. Forex traders said improved risk appetite, easing global trade concerns and a positive trend in domestic equities supported the domestic currency.

6) Gold, silver ETFs decline: Gold and silver exchange traded funds (ETFs) declined sharply as prices of the precious metals fell amid easing tariff concerns. Gold and silver typically move inversely to equities, and the decline in ETFs reflected a shift away from safe-haven assets towards riskier investments such as stocks, lending support to equity markets.

7) Broader markets rebound: Broader markets also rallied, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising over 1 percent each amid broad-based buying. The Nifty Smallcap 100 snapped a four-day losing streak, while the Nifty Midcap 100 ended a three-day decline, indicating improved market breadth and participation beyond frontline indices.

Technical Analysis

Anand James, Chief Market Strategist at Geojit Investments, said the Nifty had failed to sustain higher levels in the previous session after meeting the 25,300 objective. He noted that while downside risks remained, the formation of a doji near the lower Bollinger band and close to the 200-day simple moving average could allow a phase of consolidation. A decisive move above 25,300, he added, could open the way for levels of 25,470–25,580.

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