Sensex, Nifty Close Higher as PSU Banks, Auto Stocks Lead Rally After US Tariff Ruling

Sensex, Nifty Close Higher as PSU Banks, Auto Stocks Lead Rally After US Tariff Ruling​

Mumbai, February 23: Benchmark equity indices ended Monday’s session in positive territory, supported by strong buying in PSU banks, auto and financial stocks after the US Supreme Court struck down the Trump administration’s sweeping tariff measures.

Sensex Jumps Nearly 480 Points, Nifty Above 25,700​

The 30 share BSE Sensex climbed 479.95 points, or 0.58 percent, to close at 83,294.66. During the trading session, the index surged as much as 671.44 points, or 0.81 percent, to touch an intraday high of 83,486.15.

The 50 share NSE Nifty advanced 141.75 points, or 0.55 percent, to settle at 25,713. In intraday trade, it rose 200.2 points, or 0.78 percent, to hit a high of 25,771.45.

The rally reflected improved investor confidence following developments in the United States related to reciprocal tariffs.

Adani Ports, Kotak Mahindra Bank Among Top Gainers​

From the Sensex pack, Adani Ports and Special Economic Zone emerged as the biggest gainer, rising 2.98 percent. Other major gainers included Kotak Mahindra Bank, UltraTech Cement, Power Grid Corporation of India, Hindustan Unilever, HDFC Bank, Axis Bank, Bharti Airtel, State Bank of India, Titan Company, Mahindra and Mahindra, and Larsen and Toubro.

On the other hand, IT and select heavyweight stocks ended lower. Losers included Infosys, Tech Mahindra, Trent, HCL Technologies, Bajaj Finserv, Tata Consultancy Services, ITC Limited, Bharat Electronics Limited, Eternal, Tata Steel, and InterGlobe Aviation.

Investor Focus on Tariff Developments​

Vinod Nair, Head of Research at Geojit Investments Ltd, said domestic markets welcomed the US Supreme Court’s ruling against the reciprocal tariff policy. He noted that investors are now awaiting greater clarity on the revised strategy and the scope of renegotiations by other countries.

He added that a weaker US dollar and declining 10 year Treasury yields could introduce near term caution in global markets.

Sectorally, the IT index remained under pressure amid concerns about AI driven disruption. However, investors continued to favor domestic themes, with banks, power, FMCG and consumer discretionary stocks attracting buying interest on expectations of resilient demand and economic recovery.

Asian Markets Rally; Europe Mixed​

Broader Asian markets closed higher. Hong Kong’s Hang Seng Index surged 2.53 percent, while South Korea’s Kospi gained nearly 1 percent.

Markets in Japan and mainland China remained closed due to holidays.

In Europe, mid session trade showed mixed trends. Germany’s DAX slipped 0.44 percent, while France’s CAC 40 and the UK’s FTSE 100 traded flat.

Brent Crude Slips; FIIs Remain Net Sellers​

Global oil benchmark Brent Crude declined 0.38 percent to USD 71.49 per barrel.

On the institutional front, Foreign Institutional Investors offloaded equities worth Rs 934.61 crore on Friday. In contrast, domestic institutional investors bought stocks worth Rs 2,637.15 crore, according to exchange data.

In the previous session on Friday, the BSE Sensex had risen 316.57 points to close at 82,814.71, while the NSE Nifty gained 116.90 points to settle at 25,571.25, setting the stage for Monday’s upward momentum.