Indian Equity Markets Surge Following US Supreme Court Tariff Ruling
Indian equity benchmark indices closed significantly higher on Monday as investor sentiment strengthened substantially following a landmark decision by the United States Supreme Court. The court struck down sweeping tariffs that had been imposed by former President Donald Trump, creating a more favorable global trade environment that boosted domestic market confidence.
Market Performance and Key Metrics
The National Stock Exchange's Nifty index rose by 141.75 points, representing a gain of 0.55 percent, to close at 25,713. During the trading session, the index reached an intraday high of 25,771.45, which was an increase of 200.2 points or 0.78 percent from previous levels. Meanwhile, the Bombay Stock Exchange's Sensex climbed 479.95 points, or 0.58 percent, settling at 83,294.66 after earlier surging 671.44 points to reach an intraday peak of 83,486.15.
The market rally was driven primarily by public sector banks, automobile companies, and financial stocks as investors responded positively to easing global trade uncertainty following the US judicial decision. This development removed a significant overhang that had been affecting international market sentiment for several years.
Top Performers and Underperformers
Nifty50 Top Gainers:
- Adani Ports and Special Economic Zone (+2.94%)
- Kotak Mahindra Bank (+2.22%)
- Dr. Reddy's Laboratories (+2.11%)
- HDFC Life Insurance Company (+1.90%)
- Nestlé India (+1.65%)
- UltraTech Cement (+1.65%)
- Power Grid Corporation of India (+1.48%)
- Grasim Industries (+1.44%)
- SBI Life Insurance Company (+1.43%)
- Adani Enterprises (+1.40%)
- Axis Bank (+1.35%)
Nifty50 Top Losers:
- Kwality Wall's (-2.82%)
- Hindalco Industries (-2.09%)
- Infosys (-1.90%)
- Wipro (-1.90%)
- Tech Mahindra (-1.10%)
- Cipla (-1.09%)
- Oil and Natural Gas Corporation (-1.08%)
- Trent Limited (-0.89%)
- HCL Technologies (-0.72%)
- Eternal Limited (-0.54%)
- ITC Limited (-0.49%)
Sensex Top Gainers:
- Adani Ports and Special Economic Zone (+2.94%)
- Kotak Mahindra Bank (+2.22%)
- UltraTech Cement (+1.65%)
- Power Grid Corporation of India (+1.48%)
- Axis Bank (+1.35%)
- Hindustan Unilever (+1.34%)
- HDFC Bank (+1.29%)
- Mahindra & Mahindra (+1.01%)
- Bharti Airtel (+1.01%)
- State Bank of India (+0.97%)
Sensex Top Losers:
- Infosys (-1.90%)
- Tech Mahindra (-1.10%)
- Trent Limited (-0.89%)
- HCL Technologies (-0.72%)
- Eternal Limited (-0.54%)
- ITC Limited (-0.49%)
- Tata Consultancy Services (-0.37%)
- Bajaj Finserv (-0.34%)
Expert Analysis and Market Commentary
Vinod Nair, Head of Research at Geojit Investments Ltd, provided valuable insights into the market movement. "The US Supreme Court's ruling against Trump's reciprocal tariff policy was welcomed by domestic markets. Investors are awaiting more clarity on Trump's revised strategy and the scope of renegotiations by other nations," Nair explained.
He further elaborated on potential market dynamics, noting that "a weaker US dollar and declining 10-year Treasury yields could introduce near-term caution in global markets." Regarding sectoral performance, Nair observed that "sectorally, the IT index faced pressure from unresolved concerns over AI-driven disruption. Nonetheless, investors favoured domestic themes, with banks, power, FMCG, and consumer discretionary stocks gaining traction on expectations of resilient demand and economic recovery."
Global Market Context
Asian markets generally closed higher on Monday, with Hong Kong's Hang Seng index jumping 2.53 percent and South Korea's Kospi rising nearly 1 percent. However, markets in Japan and mainland China remained closed for holidays, limiting broader regional participation in the rally.
European markets presented a mixed picture during mid-session trading. Germany's DAX index slipped 0.44 percent, while Paris' CAC 40 and London's FTSE 100 were largely flat, indicating more cautious sentiment in European trading centers.
In commodity markets, Brent crude, the global oil benchmark, declined 0.38 percent to USD 71.49 per barrel, reflecting ongoing concerns about global demand dynamics despite the positive trade developments.
Institutional Activity and Previous Session
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 934.61 crore on the previous trading day, Friday. In contrast, domestic institutional investors demonstrated stronger confidence by purchasing shares worth Rs 2,637.15 crore during the same period, highlighting divergent perspectives between foreign and domestic market participants.
In the previous trading session on Friday, the BSE Sensex had gained 316.57 points to close at 82,814.71, while the NSE Nifty rose 116.90 points to settle at 25,571.25. Monday's gains therefore extended an already positive trend in Indian equity markets.
The combination of favorable domestic economic indicators, supportive institutional activity, and reduced global trade uncertainty created an environment conducive to market gains across multiple sectors, particularly those with strong domestic exposure and growth prospects.
