Indian equity benchmarks, the Sensex and Nifty 50, opened with a massive gap-up on Monday, tracking a wave of global relief after the U.S. Supreme Court struck down President Donald Trump’s sweeping “Reciprocal Tariffs.” While the legal victory for exporters provided the initial spark, the market remains on edge as the White House pivoted to a new 15% global baseline tariff, simultaneously driving gold and silver to record highs.
At the time of writing, the S&P BSE Sensex was trading 589.87 points, or 0.71 percent, higher at 83,404.58, while the Nifty 50 gained 175.25 points, or 0.69 percent, to hover around 25,746.50. Market breadth remained skewed in favor of bulls, with 2,201 shares advancing against 850 declines.
The Catalyst: SCOTUS Checks Trump’s Trade Powers
The primary driver for the Monday morning “leap” was the U.S. Supreme Court’s 6-3 decision late Friday. The Court ruled that President Trump overstepped his authority by using emergency laws to bypass Congress for broad-based tariffs. This effectively neutralized the threat of punitive duties—ranging from 18% to 50%—on Indian goods.
Sectoral Spotlight: IT & Pharma Lead; Banking Sees Outliers
Fourteen of the 16 major sectoral indices logged gains at the open, led by sectors with heavy U.S. exposure:
- IT & Textiles: Software giants like TCS and Infosys gained nearly 2%, while textile players like Welspun Living and Trident surged 3–8% as the immediate tariff cloud lifted.
- Banking: While the Bank Nifty stayed positive, IDFC First Bank was the day’s major outlier, plunging nearly 20% after disclosing a ₹590 crore fraud at its Chandigarh branch.
- Green Energy: NTPC Green Energy continued its momentum following the commissioning of new solar projects, trading 2.7% higher.
The ‘Fear’ Hedge: Gold and Silver Shatter Records
In a rare move, safe-haven assets rallied alongside equities. As Trump pivoted to a 15% global tariff under Section 122 (effective Feb 26), bullion markets priced in a prolonged trade war and escalating U.S.-Iran tensions.
- Gold (MCX): Vaulted by ₹3,700 to hit ₹1,60,600 per 10 grams.
- Silver (MCX): Zoomed by over ₹15,200 (6%) to reach ₹2,74,900 per kg.
Expert Take: The gap-up was fueled by massive short-covering as traders who bet against the market were forced to buy back. However, with the India VIX holding near 13.5, intraday swings could remain sharp as the February 26 deadline approaches.
Technical View: 26,000 in Sight?
Technically, the Nifty 50 has negated its previous “bearish engulfing” pattern. Analysts believe the index needs to hold above 25,700 to sustain momentum toward the psychological 26,000 mark. Immediate resistance is placed at 25,850, while the 25,600 zone has now shifted from resistance to primary support.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
