Indian shares gain after Trump drops EU tariff threat over Greenland

Indian share benchmarks rose on Thursday, tracking a rebound in global equities after U.S. President Donald Trump walked back on threats to impose tariffs on European countries and ruled out the use of force to seize Greenland.

The Nifty 50 rose 0.53% to 25,289.90, while the BSE Sensex added 0.49% to 82,307.37.

Fifteen of the 16 major sectors logged gains. The broader small-caps and mid-caps rose about 0.8% and 1.3%, respectively.

The MSCI’s broader index for Asia Pacific stocks outside Japan gained 0.9%.

“Sentiment improved following U.S. President Donald Trump’s withdrawal of tariff threats against the European Union and his optimistic remarks on a potential India-U.S. trade deal, which encouraged short-covering and risk-taking,” said Gaurav Garg, analyst at Lemonn Markets Desk.

A report by Moneycontrol quoted Trump saying on the sidelines of the World Economic Forum in Davos that the U.S. is “going to have a good deal (with India)”.

Textile exporters such as Trident, Vardhman Textiles , Gokaldas Exports, and shrimp exporters Apex Frozen Foods, Coastal Corporation and Avanti Feeds jumped on optimism over New Delhi’s potential deals with the U.S. and EU.

Dr. Reddy’s Laboratories climbed 5.2% after reporting a quarterly profit beat. It received approval from the local regulator to manufacture and sell the generic version of the weight-loss drug Ozempic.

Zomato parent Eternal closed 2.7% lower as rising competition in the quick-commerce business outweighed optimism over strong third-quarter earnings.

While domestic benchmarks rebounded on the day, they are still down 3.3% in January so far, dragged by relentless foreign outflows and mixed earnings.