Indian stocks jump as Trump tariffs face legal setback
Indian stocks jump as Trump tariffs face legal setback
Sensex and Nifty rise as a U.S. Supreme Court ruling deems tariffs illegal, sparking optimism and lifting Asian markets.
Indian equities opened higher on Monday, led by banks and services shares, as Asia-Pacific peers also rose following a landmark U.S. Supreme Court ruling that struck down Donald Trump’s tariffs as illegal. The 30-share Sensex jumped 572.10 points to 83,386.81 in early trade, while the 50-share Nifty climbed 190.65 points to 25,761.90. Of the Sensex, Adani Ports, Axis Bank, Kotak Mahindra Bank, HDFC Bank, Hindustan Unilever, Mahindra & Mahindra, ICICI Bank, Reliance Industries, State Bank of India, and PowerGrid were among the top gainers. The tech and software names like Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, IndiGo, and NTPC lagged in early deals.
Analysts framed the SC verdict as a potential turning point for global trade dynamics. 'The Trump tariff tale has become murkier after the Court declared the tariffs illegal,' said V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that even a 15% global tariff proposed under Section 122 could be challenged in courts, and the likelihood of removal is high because that provision targets a balance-of-payments crisis that the U.S. may not currently face. He added that India has already delayed its trade-negotiating team's visit to the U.S. in light of this new scenario, which could ease the tariff pressure. 'From a market perspective, the U.S. Supreme Court decision is positive, but not a guarantee of a sustained rally; we may see only relief rallies as fundamentals improve,' he said. The broader Asian markets were trading higher as well.
In a related development, U.S. customs signaled it would halt collections on tariffs deemed illegal by the Supreme Court starting Tuesday, while other measures tied to 232 or 301 duties remain unaffected. Markets will also digest the possibility that a new 15% global tariff framework could emerge under a different legal basis, adding another layer of uncertainty for traders. For Indian investors, the key question remains whether the rally can be sustained beyond short-term relief and whether domestic fundamentals continue to improve.
