Markets extend gains as investors cheer US court tariff verdict

Mumbai, Feb 23: Equity benchmark indices Sensex and Nifty ended higher on Monday, buoyed by gains in PSU bank, automotive, and financial stocks. Investor confidence was boosted following the US Supreme Court’s decision to overturn comprehensive tariffs imposed by the Trump administration.

Market Performance

The BSE Sensex increased by 479.95 points, or 0.58%, closing at 83,294.66. During the session, it hit an intraday peak of 83,486.15, advancing 671.44 points or 0.81%.

Similarly, the NSE Nifty rose by 141.75 points, or 0.55%, settling at 25,713. It climbed as high as 25,771.45 earlier in the session, marking a gain of 200.2 points or 0.78%.

Sector and Stock Highlights

Among Sensex components, Adani Ports led the gains with a rise of 2.98%. Other significant advancers included:

  • Kotak Mahindra Bank
  • UltraTech Cement
  • PowerGrid
  • Hindustan Unilever
  • HDFC Bank
  • Axis Bank
  • Bharti Airtel
  • State Bank of India
  • Titan
  • Mahindra & Mahindra
  • Larsen & Toubro

Conversely, the following stocks closed lower:

  • Infosys
  • Tech Mahindra
  • Trent
  • HCL Technologies
  • Bajaj Finserv
  • Tata Consultancy Services
  • ITC
  • Bharat Electronics
  • Eternal
  • Tata Steel
  • IndiGo

Expert Insights

Vinod Nair, Head of Research at Geojit Investments Ltd, observed that domestic markets responded positively to the US Supreme Court’s verdict against the Trump-era reciprocal tariff policy. He noted that investors are awaiting further clarity on the US administration’s revised approach and potential renegotiations with other countries.

He also highlighted that a weaker US dollar and falling 10-year Treasury yields could prompt short-term caution in global markets.

The IT index faced pressure amid ongoing concerns about AI-driven disruptions.

Meanwhile, domestic interest focused on banking, power, FMCG, and consumer discretionary sectors, supported by expectations of sustained demand and economic recovery.

International Market Overview

Asian markets closed with gains: Hong Kong’s Hang Seng increased by 2.53%, and South Korea’s Kospi rose nearly 1%. Markets in Japan and mainland China were closed due to public holidays.

European trading was mixed mid-session: Germany’s DAX fell 0.44%, while France’s CAC 40 and the UK’s FTSE 100 remained largely unchanged.

Brent crude, the international oil benchmark, dipped 0.38% to USD 71.49 per barrel.

Investment Flows

Foreign Institutional Investors (FIIs) sold equities worth Rs 934.61 crore on Friday. In contrast, domestic institutional investors purchased stocks valued at Rs 2,637.15 crore, as per exchange data.

Key Takeaways

  • Sensex and Nifty closed higher, led by PSU bank, automotive, and financial sectors.
  • US Supreme Court’s decision to overturn tariffs boosted investor sentiment.
  • Adani Ports was the top gainer among Sensex components.
  • IT sector faced pressure due to AI-related concerns.
  • Global markets showed mixed performance with gains in Asia and mixed results in Europe.
  • Foreign investors sold equities while domestic investors increased their purchases.