The Indian stock market is gearing up for a positive start on Tuesday, January 22, 2025. The mood is upbeat following a strong performance in global markets after Donald Trump was inaugurated as the 47th President of the United States.
Positive Global Trends
Asian markets saw a boost as investors anticipated clarity on Trump’s policies. US stock futures also rose, indicating confidence in the market. On his first day in office, Trump opted not to impose sweeping trade tariffs, which gave markets a much-needed lift.
On Monday, January 20, the Indian market closed on a high note. The Sensex surged by 454.11 points, or 0.59%, finishing at 77,073.44. The Nifty 50 climbed by 141.55 points, or 0.61%, to settle at 23,344.75. This rally was driven primarily by gains in banking and metal stocks.
Market Analysts Weigh In
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd., noted, “Optimism across Asian and European markets ahead of Trump’s presidency positively influenced Indian benchmarks.” He highlighted that while the sentiment was optimistic, there remains an underlying uncertainty marked by volatility. Investors are particularly focused on the upcoming Union Budget, set for February 1, as they await measures to tackle the ongoing economic slowdown and the implications of Trump’s trade policies.
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.
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