Indian Stock Markets Open Higher on Positive Global Cues After US Court Ruling
On Monday, the Indian stock market commenced trading on a positive note, with both the Nifty50 and BSE Sensex opening in the green. This upward movement was largely influenced by optimistic global cues, following a significant decision by the US Supreme Court to strike down former President Donald Trump's tariff measures. At the opening bell, the Nifty50 was positioned above the 25,700 mark, while the BSE Sensex surged beyond 83,300 points.
Market Performance and Key Levels
By 9:21 am, the Nifty50 was trading at 25,720.40, reflecting a gain of 149 points or 0.58%. Simultaneously, the BSE Sensex reached 83,341.19, climbing 526.48 points or 0.64%. These early gains underscore the market's responsiveness to international developments, as investors digested the implications of the US court ruling and subsequent tariff announcements.
Volatility and Global Developments
Market participants are preparing for heightened volatility in the coming sessions, following a series of major events over the weekend. The US Supreme Court ruled on Friday that President Trump had exceeded his authority by imposing broad tariffs under an economic emergency law. In response, Trump swiftly announced a new 10% blanket tariff using an alternative legal framework, later increasing it to 15%. This rapid policy shift has added layers of uncertainty to global trade dynamics.
US equity markets ended Friday's session in positive territory, buoyed by gains in heavyweight stocks such as Alphabet and Amazon. The broader market uplift was partly attributed to the court's decision to invalidate the president's global tariffs, fostering a sense of relief among investors.
Impact on Commodities and Geopolitical Factors
Crude oil prices experienced a decline of approximately 1% on Monday, as the United States and Iran engaged in preparations for a third round of nuclear negotiations. This development helped alleviate immediate concerns about a potential conflict in the region. However, Trump's latest tariff increases have simultaneously raised apprehensions regarding global economic growth prospects and future fuel demand, creating a complex backdrop for commodity markets.
Investor Activity and Institutional Flows
In terms of investor behavior, foreign portfolio investors were net sellers on Thursday, offloading shares worth Rs 934 crore. In contrast, domestic institutional investors emerged as net buyers, acquiring equities valued at Rs 2,637 crore. This divergence highlights the varying strategies and perspectives among market participants amid evolving global conditions.
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