Indian Markets Rally on Easing Global Tensions, Eternal Surges on Strong Q3 Results

Market Rebounds on Global Trade De-escalation

The Indian equity markets opened higher on Thursday, January 22, 2026, reversing a multi-session slump. The positive start was primarily attributed to the easing of global trade anxieties, particularly following statements from US President Donald Trump indicating a 'framework of a future deal' concerning Greenland with NATO, thus averting planned tariffs on European allies. This de-escalation significantly reduced fears of a wider trade conflict that had previously impacted global investor sentiment [cite:S-A, 31, 36].

As of 9:46 AM IST, the S&P BSE Sensex was trading at 82,695.55, marking an increase of 785.92 points, while the NSE Nifty 50 climbed to 25,409.10, up by 251.60 points [cite:S-A]. This rebound occurred despite reports of the Indian rupee reaching a record low against the US dollar the previous day. The broader market also participated in the uptrend, with the Nifty Midcap 100 index advancing by 1.43% and the Nifty Smallcap 100 gaining 1.12% [cite:S-A]. The India VIX, a measure of market volatility, declined by 3.01%, suggesting a decrease in immediate risk aversion among investors [cite:S-A].

US-India Trade Prospects and Sectoral Strength

Adding to the optimistic sentiment, US President Trump expressed confidence in achieving a favourable trade agreement with India, stating, "We are going to have a good deal with India". This renewed hope for progress in bilateral trade negotiations provided additional support to domestic market sentiment. All major sectoral indices were trading in the green during early trading hours, with the Nifty PSU Bank index showing strong performance, jumping 2.06% [cite:S-A]. Other sectors such as Auto, Financial Services, FMCG, IT, Media, Metal, Pharma, Private Bank, Realty, and Oil & Gas also registered gains, indicating broad-based buying interest [cite:S-A].

Eternal Delivers Robust Q3 Performance

Among individual company news, Eternal reported a significant uplift in its financial performance for the third quarter of FY26 (October-December 2025). The company's consolidated net profit surged by 72.8% year-on-year to ₹102 crore, a notable increase from ₹59 crore in the corresponding quarter of the previous year. Sequentially, profit grew by 56.9% from ₹65 crore. Revenue from operations more than doubled year-on-year, reaching ₹16,315 crore, compared to ₹5,405 crore in Q3 FY25. This performance was significantly driven by its quick commerce business (Blinkit), which achieved its first quarterly positive adjusted EBITDA margin. The food delivery segment also maintained steady growth in net order value.

Despite strong operational performance, Eternal's Price-to-Earnings (P/E) ratio remains exceptionally high, around 1,395.25x on a Trailing Twelve Months (TTM) basis, reflecting market expectations of future growth or a significant disparity between its market capitalization (₹2.5 trillion) and its current earnings.

Valuation Context and Peer Performance

In terms of valuation, other prominent companies also showed specific P/E ratios. Mahindra & Mahindra traded with a P/E of approximately 29-32x. Adani Ports and Special Economic Zone maintained a P/E in the range of 26-27x. UltraTech Cement’s P/E was noted around 35-57x, while Bharat Electronics had a P/E in the vicinity of 50-65x.

Outlook and Upcoming Events

Looking ahead, investors will monitor upcoming key global data, including Japan’s trade balance figures and the US GDP growth rate. Domestically, a substantial number of companies, including IndiGo, Indian Bank, DLF, Bandhan Bank, Adani Energy Solutions, and Adani Total Gas, were scheduled to announce their Q3 results on January 22, 2026. These earnings announcements, along with evolving global trade dynamics, will shape market direction in the near term.