Sensex and Nifty rally at open on boost from US tariff ruling

Indian equity benchmarks began the week on a firm footing on Monday, supported by positive global cues and improved investor sentiment following a US court decision overturning tariffs introduced under President Donald Trump.

In early trade, the BSE Sensex climbed 563 points, or 0.68 per cent, to 83,375, while the NSE Nifty 50 rose 170 points, or 0.67 per cent, to 25,741.

Broader markets were largely in step with the headline indices. The Nifty Midcap 100 edged up 0.12 per cent, while the Nifty Smallcap 100 outperformed with a gain of 0.86 per cent.

Most sectoral indices traded in positive territory. Nifty PSU Bank led the advances with a rise of 1.13 per cent, while metal and auto stocks also saw healthy buying interest, gaining 0.77 per cent and 0.83 per cent respectively.

However, the IT and chemicals segments bucked the trend, slipping 0.10 per cent and 0.26 per cent.

Market analysts said the decision by the US Supreme Court to strike down the Trump-era tariffs had improved global risk appetite. They also noted that India’s trade negotiating team had deferred its planned visit to the United States in light of the changed circumstances.

While the development was seen as a positive trigger, experts cautioned that it may not be sufficient on its own to drive a sustained rally.

Traders placed immediate support for the Nifty around the 25,370 level, with resistance seen near 25,700. Analysts said the index’s recent structure suggested stabilisation and a gradual rebuilding of market confidence after a period of choppy trading, supported by buying at lower levels and a firmer short-term outlook.

The Bank Nifty also staged a strong rebound in the previous session, outperforming the broader market after earlier weakness. Immediate support is viewed in the 60,800–60,900 range, while resistance is pegged at 61,300–61,400.

Elsewhere in Asia, Japan’s Nikkei fell 1.12 per cent, while Hong Kong’s Hang Seng rose 2.22 per cent and South Korea’s Kospi advanced 0.36 per cent.

US markets ended mixed in the previous session, with the Nasdaq down 0.16 per cent, the S&P 500 broadly flat and the Dow Jones Industrial Average slipping 0.13 per cent.

On the domestic institutional front, foreign institutional investors net sold equities worth Rs 935 crore on 20 February, while domestic institutional investors were net buyers to the tune of Rs 2,637 crore, providing support to the market.

With IANS inputs