Indian shares seen higher as Trump eases Greenland stance, drops EU tariff threat
- Gift Nifty futures were trading at 25,338
Indian shares are set to open higher on Thursday, tracking a rebound in global equities after U.S. President Donald Trump ruled out the use of force to seize Greenland and dropped plans for new tariffs on European allies, easing market jitters.
Gift Nifty futures were trading at 25,338, as of 8:09 a.m. IST, indicating that the Nifty 50 could start the session above Wednesday’s close of 25,157.50.
Other Asian markets rose 1%, tracking an uptick in Wall Street equities overnight. Trump stepped back from his earlier threats to impose tariffs as leverage to seize Greenland and ruled out the use of force.
Speaking at the World Economic Forum in Davos, the U.S. President also suggested a deal was in sight to end a dispute over the Danish territory, calming investor nerves.
While global equities rose, safe-haven gold eased after scaling a record peak in the previous session.
Meanwhile, a by Moneycontrol quoted Trump stating that the U.S. is “going to have a good deal (with India)”, signalling optimism on a bilateral trade agreement.
India is also inching closer to a trade agreement with the European Union that would create the world’s largest free-trade zone.
Both Nifty and Sensex, trading at three-month lows, lost 2% each in the previous three sessions, on tensions over Trump’s earlier threats to acquire Greenland and reignite a trade war with the European Union, relentless foreign selling and tepid corporate earnings. They are trading about 5% below their all-time high levels.
“While the improved global tone may help stabilise domestic markets after a few sessions of sharp selling, investors are likely to remain cautious,” said Ponmudi R, chief executive of Enrich Money.
“A strong U.S. dollar and sustained foreign selling remain key overhangs, while earnings recovery has been slower than expected.”
Foreign portfolio investors (FPIs) have offloaded, Indian stocks worth $3.36 billion in January so far, after a record $19 billion sales in 2025.
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