Opening Bell - Morning Commentary

Trump's Tariff Retreat Sparks Wall-Street Rally.

US stocks rallied for a second consecutive day on Thursday after President Trump backed away from threats of tariffs on Europe, easing geopolitical tensions. The S&P 500 rose 1.16% to 6,875.62, the Dow gained 1.21% to 49,077.23, and the Nasdaq climbed 1.18% to 23,224.82.

The market rebound accelerated after Trump announced a framework deal with NATO on Greenland and the Arctic region. Trump ruled out the use of military force to acquire Greenland during a Wednesday speech, signalling a softer diplomatic approach to the territory.

Following his preliminary agreement with NATO Secretary General Mark Rutte, Trump withdrew threats to impose sanctions on European countries that had opposed his plans for Greenland. The détente marked a sharp reversal from his earlier confrontational stance toward European allies.

Intel plunged over 10% in after-hours trading following disappointing forward guidance, erasing gains from Wednesday's nearly 12% rally. The chipmaker had surged to four-year highs after Nvidia's $5 billion investment and a US government stake, but weak outlook tempered enthusiasm despite optimism around new server chips and foundry expansion.

The US Dollar Index fell 0.41% to 98.37, marking its largest one-day decline in a month, despite upward GDP revisions to 4.4% from 4.3% and jobless claims beating expectations at 200K versus 212K forecast. Dovish Fed expectations and concerns over potential political interference in central bank independence weighed on the greenback.

Natural gas futures surged over 12% to $5.48 per MMBtu, nearing December 2022 levels, as extreme cold weather forecasts through early February threaten to drive heating demand to near-record levels. The commodity is tracking toward a weekly gain of more than 70%, the largest since 1990.

Nifty halted its three-session slide, rebounding 132 points to close at 25,289 after a volatile session that tested key technical levels. The index gapped up 187 points at open and held firm for the first 45 minutes before reversing post-10 AM, plunging 267 points to 25,168, finding support precisely at the 200DEMA (25,164) for a sharp 164 point rebound in the final hour.

The Indian rupee broke its losing streak, appreciating 6 paise against the greenback to close at 91.63 yesterday. The currency stabilised as global risk appetite improved following US President Trump’s withdrawal of tariff threats against Europe.

Short-term resistance remains entrenched at 25450-25500, while support has shifted higher to 25,150 near the 200DEMA confluence.

The Indian markets will be closed on Monday, January 26, 2026, for Republic Day.

Indian benchmark indices are poised to open marginally lower today, testing resilience as investors monitor whether key indices can find support at near-term levels.