Markets Rally On US Tariff Reprieve: Sensex and Nifty Edge Up As Investor Worries Ease

Mumbai: India’s stock markets kicked off the week on an upbeat note Monday, buoyed by favorable international trends after a US court decision invalidated specific tariff impositions, offering respite to traders.

Still, industry observers highlighted potential ongoing turbulence due to persistent ambiguities in worldwide trade strategies and international tensions.

The key indexes started in the green at the opening. The Nifty 50 commenced at 25,678.40, advancing 107.15 points or 0.42 percent. Meanwhile, the BSE Sensex initiated trading at 82,906.83, gaining 92.12 points or 0.11 percent.

Experts observed that although the tariff verdict sparked optimism, emerging tariff declarations and broader global ambiguities are still dampening overall mood.

Ajay Bagga, a banking and market specialist, informed ANI that Indian equity futures had spiked on Friday in response to the tariff decision but subsequently moderated those increases. He noted that with the monthly derivatives settlement looming and markets in an overbought state, expect variability in upcoming trades.

Tariff updates continue to influence international exchanges significantly. Ex-US President Donald Trump had previously declared a 10 percent tariff via Section 122, which he escalated to 15 percent for a 150-day span. A surge of relief followed indications that the US Supreme Court nullified the executive’s power to enforce such duties.

In commodities, gold values jumped almost 2 percent due to tariff-induced unease, hitting Rs 1,59,908 per 10 grams for 24-carat purity. Silver rates soared 6 percent to Rs 2,68,120 per kilogram, driven by heightened interest in secure investments.

Across sectors on the NSE, the majority performed positively, barring Nifty IT. Nifty Metal climbed about 1 percent, Nifty Auto rose 0.46 percent, and Nifty Pharma increased 0.47 percent. Nifty PSU Bank advanced 0.61 percent, Nifty Realty gained 0.46 percent, and Nifty Consumer Durables rose 0.58 percent.

Asian bourses also posted advances. Singapore’s Straits Times added 0.28 percent, Hong Kong’s Hang Seng leaped 2.21 percent, Taiwan’s Weighted Index grew 1.41 percent, and South Korea’s KOSPI edged up 0.31 percent. Japan’s markets were shut for a public holiday.

Traders are expected to keep a close eye on evolving global trade directives and geopolitical shifts for future guidance.

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