Indian benchmark indices began the week on a strong footing, rising nearly 1% in early trade on Monday after the US Supreme Court struck down tariffs imposed by Donald Trump.
At 9:39 am, the S&P BSE Sensex was up 630.25 points at 83,444.96, while the NIFTY 50 climbed 190.55 points to 25,761.80, reflecting improved investor sentiment.
Relief rally after US court ruling
The gains came after the US Supreme Court declared the tariffs illegal — a ruling widely viewed as a setback to Trump’s aggressive trade strategy. Market participants interpreted the development as easing concerns around global trade tensions.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, described the ruling as positive from a market standpoint but cautioned against excessive optimism.
“From the market perspective, the US Supreme Court decision is indeed a positive. However, this may only trigger a relief rally rather than a sustained uptrend. Markets will ultimately respond to fundamentals, which are fortunately improving,” he said.
He also noted that India has delayed the visit of its trade negotiating team to the US in light of the evolving situation — a move he termed prudent under the changed global trade environment.
Tariff uncertainty lingers
According to Vijayakumar, the legal setback has complicated the broader tariff narrative. He suggested that even the newly proposed 15% global tariff under Section 122 could face judicial scrutiny, particularly since that provision is designed for use during a serious balance-of-payments crisis — a condition the US does not currently face.
Market experts believe that while the court’s decision provides short-term comfort, sustained gains will depend on domestic earnings growth, macroeconomic stability and global cues in the coming weeks.
For now, Dalal Street appears to be celebrating the easing of one key external risk, even as investors remain watchful of further developments on the global trade front.
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