Indian indices ended higher on Thursday, buoyed by gains in financial and information technology stocks, as market participants welcomed a U.S. trade court ruling that blocked the bulk of former President Donald Trump's proposed "Liberation Day" import tariffs.
The BSE Sensex gained 320.70 points, or 0.39%, to close at 81,633.02, while the NSE Nifty added 81.15 points, or 0.33%, to settle at 24,833.60.
The market capitalization of all listed companies on the BSE increased by Rs 84,562 crore to Rs 445.47 lakh crore.
Sector Watch
Gains in financials, metals, and IT stocks powered Thursday’s rally. Among Sensex constituents, IndusInd Bank, Sun Pharma, Eicher Motors, Adani Ports, Tata Steel, and Tech Mahindra rose between 1.2% and 2.5%.
IT stocks, which derive a large portion of revenue from the U.S., advanced 0.8%, supported by optimism around easing trade tensions. The Nifty Metal index led sectoral gains, rising 1.2%, with Jindal Stainless jumping 3.8% and JSW Steel adding 0.9%.
Welspun Corp surged as much as 11% to a record high after the pipe maker reported a more-than-doubling of fourth-quarter profit, reduced gross debt, and projected strong revenue growth for the year ahead.
The Nifty and Sensex have now climbed about 13% and 14%, respectively, from their April lows, driven by foreign inflows and improving global trade sentiment.
Broader markets also advanced, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.6% each.
Expert View
Global sentiment improved after a U.S. court struck down Trump’s reciprocal tax policy, said Vinod Nair, Head of Research, Geojit Investments, adding that "however, the domestic market remained mostly rangebound during the day due to rising oil prices and higher U.S. 10-year bond yields."
"Some recovery was seen toward the end of the session, driven by F&O expiry led covering. Export-focused sectors like IT and Pharma performed well, supported by hopes of easing trade tensions. Lack of positive domestic triggers and a drop in industrial output to an eight-month low could lead to short-term market consolidation," said Nair.
Global Markets
Global markets rallied on Thursday after a U.S. federal court blocked former President Donald Trump’s proposed “Liberation Day” tariffs, lifting investor sentiment and sending Wall Street futures and European stocks higher.
The U.S. Court of International Trade ruled that Trump exceeded his authority by imposing sweeping import duties on April 2. While the White House quickly appealed and may escalate the case to the Supreme Court, the ruling sparked hopes that the harshest tariffs could be delayed or scrapped.
The decision also raised the possibility that U.S. trade partners might pause ongoing negotiations, awaiting clarity on the outcome.
Europe’s STOXX 600 rose 0.3% in early London trade, though the FTSE 100 slipped 0.1%. In Asia, Japan’s Nikkei and South Korea’s Kospi each surged 1.9%, with the latter hitting a nine-month high. Chinese blue chips added 0.6%.
U.S. Treasury yields climbed on concerns over inflation and fiscal expansion, following the House passage of Trump’s spending-heavy tax bill. The 10-year yield rose 4 basis points to 4.52%, while 30-year yields stayed above the key 5% mark.
Fed minutes showed “almost all participants” flagged risks of inflation persisting longer than expected, partly due to tariff pressures. Rate cut odds have cooled, with just a 20% chance seen for July and 60% for September, down sharply from prior expectations.
In commodities, gold edged down 0.2% to $3,283 an ounce.
Crude Impact
Oil prices climbed nearly $1 a barrel on Thursday after a U.S. court blocked most of former President Donald Trump's proposed tariffs, easing trade concerns. Markets also remained on edge ahead of potential new U.S. sanctions targeting Russian crude exports and an upcoming OPEC+ decision on a possible output increase in July.
Brent crude rose 96 cents, or 1.5%, to $65.86 a barrel, while U.S. West Texas Intermediate (WTI) gained 92 cents, also up 1.5%, to $62.76 by 0955 GMT.
Rupee vs Dollar
The Indian rupee edged 0.2% lower on Thursday, settling at 85.5075 per U.S. dollar, pressured by stronger demand for dollars from importers and a firmer greenback after a U.S. court blocked former President Donald Trump's proposed "reciprocal tariffs."
The dollar index briefly hit a one-week high of 100.48 before dipping back below the 100 mark, while Asian currencies traded mixed.
(With inputs from agencies)
The BSE Sensex gained 320.70 points, or 0.39%, to close at 81,633.02, while the NSE Nifty added 81.15 points, or 0.33%, to settle at 24,833.60.
The market capitalization of all listed companies on the BSE increased by Rs 84,562 crore to Rs 445.47 lakh crore.
Sector Watch
Gains in financials, metals, and IT stocks powered Thursday’s rally. Among Sensex constituents, IndusInd Bank, Sun Pharma, Eicher Motors, Adani Ports, Tata Steel, and Tech Mahindra rose between 1.2% and 2.5%.
IT stocks, which derive a large portion of revenue from the U.S., advanced 0.8%, supported by optimism around easing trade tensions. The Nifty Metal index led sectoral gains, rising 1.2%, with Jindal Stainless jumping 3.8% and JSW Steel adding 0.9%.
Welspun Corp surged as much as 11% to a record high after the pipe maker reported a more-than-doubling of fourth-quarter profit, reduced gross debt, and projected strong revenue growth for the year ahead.
The Nifty and Sensex have now climbed about 13% and 14%, respectively, from their April lows, driven by foreign inflows and improving global trade sentiment.
Broader markets also advanced, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 0.6% each.
Expert View
Global sentiment improved after a U.S. court struck down Trump’s reciprocal tax policy, said Vinod Nair, Head of Research, Geojit Investments, adding that "however, the domestic market remained mostly rangebound during the day due to rising oil prices and higher U.S. 10-year bond yields."
"Some recovery was seen toward the end of the session, driven by F&O expiry led covering. Export-focused sectors like IT and Pharma performed well, supported by hopes of easing trade tensions. Lack of positive domestic triggers and a drop in industrial output to an eight-month low could lead to short-term market consolidation," said Nair.
Global Markets
Global markets rallied on Thursday after a U.S. federal court blocked former President Donald Trump’s proposed “Liberation Day” tariffs, lifting investor sentiment and sending Wall Street futures and European stocks higher.
The U.S. Court of International Trade ruled that Trump exceeded his authority by imposing sweeping import duties on April 2. While the White House quickly appealed and may escalate the case to the Supreme Court, the ruling sparked hopes that the harshest tariffs could be delayed or scrapped.
The decision also raised the possibility that U.S. trade partners might pause ongoing negotiations, awaiting clarity on the outcome.
Europe’s STOXX 600 rose 0.3% in early London trade, though the FTSE 100 slipped 0.1%. In Asia, Japan’s Nikkei and South Korea’s Kospi each surged 1.9%, with the latter hitting a nine-month high. Chinese blue chips added 0.6%.
U.S. Treasury yields climbed on concerns over inflation and fiscal expansion, following the House passage of Trump’s spending-heavy tax bill. The 10-year yield rose 4 basis points to 4.52%, while 30-year yields stayed above the key 5% mark.
Fed minutes showed “almost all participants” flagged risks of inflation persisting longer than expected, partly due to tariff pressures. Rate cut odds have cooled, with just a 20% chance seen for July and 60% for September, down sharply from prior expectations.
In commodities, gold edged down 0.2% to $3,283 an ounce.
Crude Impact
Oil prices climbed nearly $1 a barrel on Thursday after a U.S. court blocked most of former President Donald Trump's proposed tariffs, easing trade concerns. Markets also remained on edge ahead of potential new U.S. sanctions targeting Russian crude exports and an upcoming OPEC+ decision on a possible output increase in July.
Brent crude rose 96 cents, or 1.5%, to $65.86 a barrel, while U.S. West Texas Intermediate (WTI) gained 92 cents, also up 1.5%, to $62.76 by 0955 GMT.
Rupee vs Dollar
The Indian rupee edged 0.2% lower on Thursday, settling at 85.5075 per U.S. dollar, pressured by stronger demand for dollars from importers and a firmer greenback after a U.S. court blocked former President Donald Trump's proposed "reciprocal tariffs."
The dollar index briefly hit a one-week high of 100.48 before dipping back below the 100 mark, while Asian currencies traded mixed.
(With inputs from agencies)
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