The Indian market is ready for a healthy start on January 22, 2025, as global markets have opened on a firm note with the inauguration of America’s 47th President, Donald Trump. The mood is upbeat as Asian markets saw a boost as investors wanted more clarity on plans from Trump. The futures in America also increased, which is evidence of confidence in the market. In his first day in office, Trump did not declare broad trade tariffs, which is a much-needed relief in terms of giving a boost to markets.
Strong Performance on Monday
The Indian market closed on a high on Monday, January 20. The Sensex rallied 454.11 points, or 0.59%, closing at 77,073.44. The Nifty 50 increased 141.55 points, or 0.61%, closing at 23,344.75. The rally was primarily supported by bank as well as metal stocks.
Market analysts’ perspectives
Asian as also European market hopes in anticipation of Trump rule made a bullish impact on Indian benchmarks, noted Prashanth Tapse, Senior VP Research at Mehta Equities Ltd. He noted that although sentiment remains optimistic, a feeling of uncertainty with volatility is prevailing. The investor is eagerly waiting for the February 1 Union Budget as they are looking out for measures that tackle the prevailing slowdown in the economy as also the fallout from Trump’s trade measures.
Key Market Indicators
1. Asian Markets: They traded higher, reflecting strong investor sentiment.
2. Gift Nifty: It was trading around the 23,410 level, indicating a slight premium and a muted opening for Indian indices.
3. Wall Street: US stock markets were closed on January 20 due to Martin Luther King Jr. Day. However, US futures gained after Trump’s inauguration, with the S&P 500 up 0.5% and Nasdaq 100 futures rising by 0.6%.
4. Dollar Performance: The dollar experienced losses after Trump refrained from imposing new tariffs. It fell by 1.2% on January 20, marking its most significant decline since late 2023.
5. Bitcoin Surge: Bitcoin prices soared past $109,000, reaching an all-time high of $109,114.88 as Trump’s pro-crypto stance took effect.
6. Oil Prices: Crude oil prices dipped, with Brent crude down by 0.32% and WTI crude dropping 1.46%.
As the market opens today, all eyes will be on how these global cues will play out in the Indian stock indices.
