Indian Shares Likely To Open On Cautious Note

(RTTNews) - Indian shares look set to open on a cautious note on Tuesday as rising geopolitical and trade tensions in the dispute over Greenland continue to trigger a risk-off mood across global markets.

As tensions rise over U.S. President Donald Trump's push to take control of Greenland, U.S. Treasury Secretary Scott Bessent warned European governments not to respond with tariffs or other countermeasures, saying such a move would be "very unwise."

To support long-planned regional defense operations, the United States will deploy military aircraft to Greenland's Pituffik Space Base, North American Aerospace Defense Command (NORAD) said.

European Union leaders will hold an emergency meeting in Brussels on Thursday to decide how to respond to Trump's threat to impose new tariffs on several European countries. Trump is scheduled to address the World Economic Forum in Davos on Wednesday.

Closer home, India signed a $3 billion deal on Monday to buy liquefied natural gas from the United Arab Emirates, with both countries pledging to double bilateral trade to $200 billion in six years and form a strategic defense partnership.

India and the European Union are on the verge of sealing their long-delayed free trade agreement, with a formal signing of the deal expected around January 26-27.

Indian shares ended lower on Monday but closed well off their day's lows after the International Monetary Fund (IMF) raised India's GDP growth forecast for FY26 by 70 basis points to 7.3 percent, citing strong momentum in the third quarter.

The BSE Sensex and NSE Nifty index both ended down around 0.4 percent while the rupee fell by 14 paise to close at 90.92 against the U.S. dollar.

FIIs were net sellers of Indian shares to the extent of Rs. 3,263 crore on Monday, while DIIs net bought shares worth Rs. 4,234 crore, according to exchange provisional data.

Asian markets were mostly lower this morning as investors watched for the European Union's response to potential U.S. tariffs.

The dollar hit a one-week low against major peers while gold slipped after closing at a record high in the previous session. Oil traded lower on oversupply worries.

U.S. stock markets were closed on Monday in observance of the Martin Luther King Jr. Day holiday.

European markets logged their biggest daily drop in two months on Monday as Trump doubled down on his plan to acquire Greenland and reports suggested that EU leaders are considering countermeasures in response to Trump's tariff threats.

The pan European Stoxx 600 tumbled 1.2 percent. The German DAX lost 1.3 percent, France's CAC 40 slumped 1.8 percent and the U.K.'s FTSE 100 shed 0.4 percent.