Sensex, Nifty 50 join global rebound as Trump drops EU tariff threat over Greenland

India's stock market advanced today, tracking a rebound in global equities after US President Donald Trump pulled back on his threat to impose tariffs on eight European countries as leverage to seize Greenland and ruled out use of force.

The Bombay Stock Exchange building on Dalal Street in Mumbai. (Reuters)

The 30-share S&P BSE Sensex rose as much as 1.06% in intraday trading, even as the broader Nifty 50 gained 1.09%. All 16 major sectors logged gains, with the small-caps and mid-caps rising about 1.5% and 1.8%, respectively.

The benchmarks had lost 2% each over the previous three sessions, on Trump's tariff tantrums linked to United States' plan to annex Greenland, relentless foreign selling and lacklustre third-quarter earnings.

“The message that the US would refrain from imposing tariffs on Europe takes away the threat of a US-Europe trade war, which was dragging markets down,” V.K. Vijayakumar, chief investment strategist at Geojit Investments, said in an emailed statement. “The consequent relief rally in the domestic market today can be significant since there are about 2 lakh (200,000) short contracts, and the construct is right for short-covering.”

Elsewhere, Moneycontrol quoted Trump saying that the US is “going to have a good deal (with India)”, signalling movement on trade talks between the two countries.