Sensex surges nearly 800 points: What's driving today's market rally
What's the story
The benchmark indices in the Indian stock market opened on a positive note today, with the Sensex gaining nearly 800 points. The rally was largely driven by a rebound in global equities after US President Donald Trump eased tensions over Greenland and dropped plans for new tariffs on European allies. At around 9:45am the Sensex surged by 773.05 points or 0.94% to 82,682.69 while Nifty climbed to 25,402.85 up by 245.35 points.
Global impact
Trump's stance on Greenland and trade deal
President Trump's decision to withdraw a threat of tariffs on several countries over their position on Greenland has also contributed to the market rally. He announced that he had reached the outlines of a deal with NATO regarding the future of the island. "Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st," Trump said after a meeting in Davos.
Trade optimism
Optimism around India-US trade deal
Adding to the positive market sentiment is Trump's statement that the US is "going to have a good deal (with India). " This has sparked optimism over a potential bilateral trade agreement between the two nations. The combination of these global developments has contributed significantly to today's rally in India's benchmark indices.