The Core Report #778 India Joins Global Markets In Greenland-Triggered Fall
Jan 20, 2026
Ambareesh Baliga, a seasoned market expert, and Prasanna Tantri, an Associate Professor of Finance, explore the recent turmoil in global markets linked to geopolitical tensions and their impact on India. Baliga shares insights on how investor behavior and overvaluations are leading to significant sell-offs. Meanwhile, Tantri emphasizes the need for sensible government spending cuts to bolster economic stability. They also discuss the effects of fiscal policies on investments like healthcare, highlighting the importance of strategic capital expenditure.
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Greenland Rhetoric Sparks Global Sell-Off
- Global markets fell after President Trump escalated rhetoric over Greenland and threatened tariffs, dragging Indian markets down too.
- The sell-off was broad-based, hitting small/mid caps and IT shares while FPIs sold over $3bn in January.
Metals Rally Reflects Risk And Policy Shifts
- Gold and silver surged sharply as geopolitical risk and policy moves fueled safe-haven demand.
- Silver rose ~34% in January and has gained massively since Trump's second term began.
Portfolios Hurt Despite Nifty Strength
- Ambareesh Baliga described how most portfolios outside index stocks were bleeding despite Nifty highs.
- He linked the weakness to geopolitical fear around Trump and Greenland, driving gold and safe-haven flows.
