Indian stock markets opened bly on Thursday following a significant ruling from a US court. The Manhattan federal court deemed former President Donald Trump's imposed ‘Liberation Day’ tariffs unconstitutional and issued an injunction against them. This decision not only provided relief to US markets but also had a positive ripple effect on Asian markets and the Indian stock exchanges.
The Court Ruling and its Impact
The Trump administration had planned to impose additional taxes on goods imported from countries that purchased less from the US while selling more into the American market. This ‘Trump Tariff’ was implemented under the International Emergency Economic Powers Act (IEEPA). However, the Manhattan court declared this order a misuse of presidential powers, stating that the law did not grant such broad authority. This court decision reduced uncertainty in US markets and boosted investor confidence.
Sharp Rise in the Indian Stock Market
This ruling positively impacted Indian markets. The Bombay Stock Exchange (BSE) Sensex opened with a surge of 400 points. Opening at 81,591.03 compared to its previous close of 81,312.32, it briefly touched 81,816. The National Stock Exchange (NSE) Nifty also saw an increase, trading at 24,889.70 from its previous level of 24,752.45.
Positive Sentiment in Asian Markets
Along with India, Asian markets also experienced a bullish trend on Thursday. Japan's Nikkei index traded up 1.68%, while Hong Kong's Hang Seng rose by 1%. South Korea's KOSPI index also saw a gain of 1.76%. These indicators reflect growing investor confidence in global markets.
Surge in Major Stocks
Many large and mid-cap stocks performed bly during this market rally. Infosys, a tech company, registered a 1.40% increase, while Eternal was up 1.30%. In the mid-cap segment, Castrol India saw a 6.18% rise, Schaeffler 3.30%, and Prestige 3%. Small-cap stocks also saw significant gains, with MMTC surging 11.53%, WelCorp 8.10%, and IPL 6.40%.
