Mumbai, February 23: The benchmark indices Sensex and Nifty begin the week on a firm footing on Monday, supported by strong buying in banking and services stocks, as positive cues from Asian markets lift investor sentiment.
The rally follows a landmark ruling by the US Supreme Court that invalidated the Trump tariffs, terming them illegal, a development that analysts say could reshape global trade dynamics.
Sensex Jumps Over 570 Points, Nifty Reclaims 25,750 Mark
The 30 share BSE Sensex rises 572.10 points, or 0.69 percent, to 83,386.81 in early trade. The 50 share NSE Nifty advances 190.65 points, or 0.75 percent, to 25,761.90.Banking heavyweights and frontline stocks lead the gains. Among Sensex constituents, Adani Ports, Axis Bank, Kotak Mahindra Bank, HDFC Bank, Hindustan Unilever, Mahindra and Mahindra, ICICI Bank, Reliance Industries, State Bank of India, and PowerGrid emerge as major gainers.
On the other hand, Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, IndiGo, and NTPC trade in the negative territory during early deals.
Tariff Verdict Lifts Global Sentiment
Market sentiment strengthens after the US Supreme Court declares the Trump tariffs illegal. The ruling is seen as a significant setback to the strategy of using tariffs as a trade weapon.Analysts note that the new 15 percent global tariff imposed under Section 122 is also likely to face legal challenges. Section 122 allows the US president to impose tariffs to address a serious balance of payments crisis, a condition that is not currently present in the United States.
India has already delayed the visit of its trade negotiating team to the US in view of the evolving scenario, a move considered positive in the current context.
However, while the court decision offers immediate relief to markets, participants caution that it may not trigger a sustained rally. Market direction is expected to depend on underlying fundamentals, which are currently showing signs of improvement.
Asian Markets Rally; Oil Prices Ease
Broader Asian markets trade higher in early sessions. Hong Kong's Hang Seng surges over 2 percent, while South Korea's Kospi gains nearly 1 percent. Markets in Japan and mainland China remain closed due to holidays.In the commodities market, Brent crude declines 1.07 percent to USD 70.99 per barrel, offering additional comfort to import dependent economies.
FIIs Continue to Offload, DIIs Step In
Foreign Institutional Investors offload equities worth Rs 934.61 crore on Friday, according to exchange data. In contrast, domestic institutional investors remain net buyers, purchasing stocks worth Rs 2,637.15 crore and offsetting foreign selling pressure.In the previous session on Friday, the BSE Sensex climbed 316.57 points to settle at 82,814.71, while the NSE Nifty advanced 116.90 points to close at 25,571.25.
With global cues turning supportive and banking stocks leading from the front, the domestic markets open the week with renewed momentum, even as investors keep a close watch on legal and policy developments abroad.
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