A United States federal trade court has ruled that President Donald Trump’s tariff actions, which triggered a global trade war, were unlawful and must be revoked. The verdict brought relief to global markets, sending US futures and Asian indices sharply higher. India’s derivatives market also recorded significant gains.
While the US and Asian markets responded positively to the court’s verdict and Nvidia’s upbeat earnings, Indian equities remained range-bound and directionless. Analysts are closely watching how Trump may respond to the legal blow, with expectations of a continued legal tussle.
On Wednesday night, Gift Nifty closed at 24,762.50 and climbed to 24,835 in early Thursday trade before dipping slightly — signalling a likely positive start for the Indian market.
European markets closed lower on Wednesday, with only defensive stocks posting gains. Wall Street was also weak, with all major indices closing down about half a percent as investors awaited Nvidia’s quarterly results. Despite hawkish signals in the latest Federal Reserve meeting minutes, there was a sense of resilience in the market.
The Dow Jones Industrial Average fell 244.95 points (0.58%) to close at 42,098.70. The S&P 100 lost 32.99 points (0.56%) to end at 5,888.55, while the Nasdaq Composite shed 98.23 points (0.51%) to 19,100.90.
US futures surged late Wednesday as the court ruling and Nvidia’s better-than-expected earnings lifted sentiment. The company’s critical data centre segment posted a 73 percent growth. Futures for the Dow rose 508 points (1.18%), the S&P 500 gained 95 points (1.6%), and Nasdaq futures jumped 430 points (2.00%).
Asian indices opened strong on Thursday. Japan’s Nikkei gained 1.5 percent, while South Korea’s Kospi rose 1% in early trade.
Indian equities traded without clear direction despite positive global cues. A report that the first phase of the India-US trade pact could be ready by June failed to excite investors. Post-market release of April’s industrial output index was disappointing, indicating a decline in the index despite a pickup in factory activity.
On Wednesday, the Nifty fell 73.75 points (0.30%) to 24,752.45, while the Sensex lost 239.31 points (0.29%) to close at 81,312.32. Bank Nifty rose by 64.20 points (0.12%) to 55,417.00. The Nifty Midcap 100 slipped 13.10 points (0.12%) to 57,141.40, while the Smallcap 100 gained 58.85 points (0.33%) to end at 17,784.00.
Market breadth was slightly negative. On the BSE, 1,956 stocks advanced while 2,006 declined. On the NSE, 1,462 rose and 1,395 declined. A total of 51 NSE stocks touched their 52-week highs, while 18 hit 52-week lows. Ninety-three stocks hit the upper circuit, whereas 47 were locked in the lower circuit.
Foreign institutional investors (FIIs) net bought equities worth ₹4,662.92 crore on Wednesday. Domestic institutional investors (DIIs) purchased stocks worth ₹7,911.99 crore.
Support for the Nifty is now seen at 24,705 and 24,660, while resistance is expected near 24,830 and 24,900. A close above 24,800 may trigger a rally towards 25,100.
The US court’s decision, which reduced global trade uncertainty, weighed on gold prices. After falling to $3,288 per ounce on Wednesday, gold touched a low of $3,255 Thursday morning before recovering slightly. In Kerala, gold held steady at ₹71,480 per sovereign on Wednesday, though a dip is expected today.
Rubber prices dropped 2.29 percent in international markets to 166.60 cents per kg. Cocoa prices also slipped 1.14 per cent to $9,659.08 per tonne.
The US dollar index edged up to 100.39 on Thursday morning from 99.88 on Wednesday. The euro weakened to $1.124, while the pound held at $1.343. The Japanese yen fell to 145.93 against the dollar.
Yields on US 10-year Treasuries climbed to 4.513 per cent, and 30-year yields rose above 5 per cent. The rupee weakened by three paise on Wednesday to close at 85.36 per dollar. The Chinese yuan remains at 7.20 per dollar.
Bitcoin continued its choppy movement, trading above $108,000 on Thursday morning. Ether hovered near $2,720.
