The stock market opened at a higher level with great growth, Sensex jumped by more than 500 points.

Mumbai, 22 January. The Indian stock market made a spectacular comeback on Thursday, ending a three-day losing streak as trade war concerns related to Greenland eased. During this period, Sensex opened at higher level with a jump of more than 500 points. The 30-share BSE Sensex opened at 82,459.66 compared to the previous day’s closing of 81,909.63. Whereas Nifty opened at 25,344.15, which had closed at 25,157.50 level the previous day. Till the time of writing the news in early trade (9.18 am), BSE Sensex was trading at 82,432.69 with a rise of 523.06 points or 0.64 percent.

Whereas Nifty was at 25,310.05 with a rise of 152.55 points or 0.61 percent. During this period, all the Nifty indices were seen trading in the green. However, after some time the Sensex saw a rise of more than 700 points. In the broader market, Nifty Midcap index rose by 1.4 percent, while Nifty Smallcap increased by 1 percent. Sector wise, all the indices were in the green, prominent among which were Nifty PSU Bank index (up 2 per cent), Nifty Auto and Bank index (up 1 per cent), Nifty IT index (up 0.9 per cent) and Nifty Metal (up 0.8 per cent).

Tata Steel, Adani Ports, Asian Paints, BEL, SBI, Kotak Bank, Sun Pharma, Trent, M&M, Bajaj Finserv, IndiGo and ITC were among the top gainers in the Sensex pack, rising over one per cent. On Thursday, a total of 29 out of 30 Sensex stocks registered gains. Only ICICI Bank shares saw a decline.

Dr. VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited, said that once again Trump’s well-known attitude, which is called TACO (Trump Again Chickens Out), has been seen. President Trump has backed down from his threat to ‘take over Greenland by force if necessary’ and said that a framework for a future agreement regarding Greenland has been prepared. More importantly, America has indicated that it will refrain from imposing tariffs on Europe for the time being. This has averted the threat of US-Europe trade war, which was putting pressure on the markets.

The expert further said that after these signals, a relief rally is being seen in the market, because at present there are about 2 lakh short contracts in the market. The current conditions are favorable for short-covering, which can lead to good bullishness in the market going forward. However, the third quarter profit position of companies has been impacted by additional provisions related to the new labor code. But the market will not take it very seriously, because it is a one-time expenditure.