Sensex, Nifty Rise After US Court Blocks Trump’s Tariffs; IT Stocks Lead Early Gains
Benchmark indices Sensex and Nifty opened on a strong note Thursday, gaining sharply in early trade, after a US federal court blocked Donald Trump’s controversial “Liberation Day” tariffs — a move welcomed by global markets. IT stocks and midcaps led the charge on Dalal Street.
The BSE Sensex surged 424 points to touch 81,736 by 9:22 a.m., while the NSE Nifty50 advanced 90 points to 24,842. Gains were broad-based across sectors, especially in IT and midcap counters, amid global relief over reduced trade tensions.
The rally came despite some early volatility ahead of the monthly futures and options (F&O) expiry. Analysts attributed the early optimism to favorable international cues and the easing of macroeconomic concerns tied to global trade.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Trump’s tariff setback is significant. The court ruling affirms that economic policies cannot override legal checks. From an investor’s point of view, this development is clearly market-friendly.”
He added that the Nifty is consolidating in a 500-point band between 24,500 and 25,000, with strong action seen in select mid and small-cap stocks driven by earnings. “Avoid chasing valuations blindly. Stick to quality,” he advised.
Akshay Chinchalkar of Axis Securities said, “Despite Nifty’s dip over the past two days, India VIX has fallen, which suggests a lack of strong bearish sentiment. As long as we stay above the 24,462 support, we remain bullish in outlook.”
Resistance levels, he noted, are at 25,116 and 25,390, while support ranges between 24,600 and 24,700.
Anand James, Chief Market Strategist at Geojit, noted divergence in market behavior. “While Nifty closed near the day’s low on Wednesday, only 37% of midcap 150 stocks followed suit, indicating strength outside the frontline index.”
He flagged 24,811 as a crucial intraday level. “A break below 24,755 could push Nifty back to the 24,500–24,060 zone,” he warned, adding that cautious optimism is likely to prevail.
The market rally follows a significant legal setback for former US President Donald Trump, whose blanket 10% import tariffs were ruled unconstitutional by a US court. The Court of International Trade found the move exceeded presidential powers under the International Emergency Economic Powers Act.
Global investors breathed a sigh of relief as the decision de-escalates the risk of a new trade war. The US dollar strengthened, and tech stocks like Nvidia helped lift sentiment on Wall Street, fueling optimism in Asian markets.
