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Markets Rebound After Trump Drops Tariff Threats and Cools Greenland Row

Risk appetite improved after Trump's Davos pullback on Greenland tariffs.

Overview

  • Indian equities snapped a three‑day slide on Thursday, with the Sensex up 397.74 points to 82,307.37 and the Nifty higher by 132.40 to 25,289.90 as sectoral gains broadened and short covering kicked in.
  • The rupee recovered from record lows, closing at 91.58 on Thursday on suspected RBI support and improving sentiment, then strengthening to about 91.41 per dollar in early Friday trade.
  • Gold and silver fell from this week’s record peaks as traders booked profits and the dollar firmed, with MCX February gold down about 0.7% to near ₹1,51,774 per 10 grams and MCX March silver lower to around ₹3,16,958 per kg.
  • Foreign institutional investors continued to sell shares even as domestic institutions bought, with FIIs net offloading roughly ₹1,788–₹2,550 crore and DIIs purchasing about ₹4,520 crore across the latest sessions reported.
  • Asian stocks extended gains on Friday following the de‑escalation, while policymakers and data remain in focus after the Bank of Japan held rates and ahead of key US inflation readings and the Federal Reserve decision.