Markets React to Trump’s Inauguration: Indian Indices Follow Global Cues-Here is What to Expect Today

“Sensex and Nifty poised for a positive start as global markets react to Trump’s trade policies and other economic cues.”

January 21, 2025: The Indian stock market is expected to open on a positive note Tuesday, influenced by global market optimism following Donald Trump’s inauguration as the 47th President of the United States. The upbeat sentiment in global markets was fueled by the absence of sweeping trade tariffs from Trump on his first day in office.

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On Monday, domestic equity benchmarks saw strong gains driven by banking and metal stocks. The Sensex rose by 454.11 points (0.59%) to close at 77,073.44, while the Nifty 50 gained 141.55 points (0.61%), settling at 23,344.75.

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Global Market Cues for Today:

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1. Asian Markets:
   Asian markets traded higher, with Japan’s Nikkei 225 up by 0.52%, and South Korea’s Kospi rising by 0.97%. Hong Kong’s Hang Seng index futures also indicated a strong opening.
2. Gift Nifty:
   Gift Nifty traded at 23,410, a 10-point premium from the Nifty futures’ previous close, signaling a steady opening for Indian indices.
3. US Markets:
   US stock markets remained closed on Monday for Martin Luther King Jr. Day, but futures for the S&P 500 and Nasdaq 100 posted gains of 0.5% and 0.6%, respectively.
4. Trump Inauguration:
   Donald Trump’s second-term inauguration has influenced markets globally, with his vows to revamp trade policies and protect American workers resonating with investors.
5. Currency Movement:
   The dollar index experienced its sharpest daily loss since 2023, dropping 1.2% to stand at 108.010. The euro gained to $1.0421, while the dollar dipped against the Japanese yen and Chinese yuan.
6. Bitcoin Surge:
   Bitcoin reached an all-time high of $109,114.88 as pro-crypto sentiments were bolstered by Trump’s presidency.
7. Oil Prices:
   Crude oil prices fell, with Brent crude trading at $79.89 a barrel and WTI futures dropping to $76.74.

Expert Opinion:
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, stated, “Optimism across Asian and European markets, coupled with Trump’s inauguration, positively influenced Indian benchmarks. However, market undertones remain uncertain, with volatility expected.”

Focus Ahead:
Indian investors are also gearing up for the Union Budget announcement on February 1, which is expected to address the ongoing economic slowdown and Trump’s potential trade reforms.

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Indian stock market trends, Trump inauguration market impact, Sensex and Nifty updates, Bitcoin prices today, global market cues, oil prices latest.