The Indian equity benchmarks, Sensex and Nifty 50, opened on a firm note this Monday, February 23, 2026, as global investors cheered a landmark ruling by the US Supreme Court. In a decisive 6-3 verdict, the court struck down the sweeping import tariffs previously imposed by US President Donald Trump under emergency powers. The news triggered a “risk-on” sentiment across Asian markets, providing much-needed relief to export-heavy sectors and emerging economies like India.
At the opening bell, the BSE Sensex jumped 92.12 points (0.11%) to 82,906.83, quickly gaining momentum to hit an intraday high of 83,486.15. Simultaneously, the NSE Nifty 50 rose 107.15 points (0.42%) to open at 25,678.40, later scaling past the 25,700 mark. The rally was primarily driven by PSU banks, auto, and healthcare stocks, as the removal of trade barriers is expected to improve earnings visibility for Indian exporters.
The US Supreme Court ruled that the administration had exceeded its authority under the International Emergency Economic Powers Act (IEEPA). This legal setback for the Trump administration effectively dismantled a major layer of trade uncertainty. However, the market’s euphoria was partially tempered by President Trump’s subsequent announcement of a temporary 15% global tariff—an increase from the previous 10%—using alternative legal authorities.
Despite this new hurdle, Indian markets remained resilient. Analysts suggest that the court’s intervention provides a structural reset to global trade dynamics. Key market highlights included:
- Top Gainers: Adani Ports led the pack with a 2.98% rise, followed by Kotak Mahindra Bank, UltraTech Cement, and HDFC Bank.
- Sectoral Performance: The Nifty PSU Bank index outperformed with a 1.36% gain, while the Metal and Auto sectors also saw healthy buying.
- Laggards: The IT sector faced pressure due to ongoing worries regarding AI-driven disruptions, with Infosys and Tech Mahindra ending in the red.
In light of the judicial developments in Washington, the Indian government has reportedly deferred its planned trade delegation visit to the US. Under a proposed framework, India was negotiating a reduction of US tariffs to 18% in exchange for a $500 billion purchase of American goods over five years. The Supreme Court ruling gives New Delhi renewed strategic leverage in these ongoing negotiations.
Furthermore, the easing of trade tensions led to a slight weakening of the US Dollar Index, which provided a tailwind for the Indian Rupee. Combined with a minor dip in global crude oil prices—with Brent crude trading around $71.49—the domestic macro environment appears supportive of short-term consolidation.
Key Highlights:
- Market Surge: Indian indices opened higher with the Sensex rising over 400 points and Nifty reclaiming the 25,700 level following the US Supreme Court’s decision to scrap Trump’s tariffs.
- Judicial Ruling: The US court invalidated tariffs imposed under emergency powers, providing a significant boost to global trade sentiment and export-oriented sectors.
- Mixed Cues: While the ruling is a long-term positive, President Trump’s retaliatory move to hike temporary tariffs to 15% introduced some intraday volatility.
- Sector Highlights: PSU banks and auto stocks were the primary beneficiaries of the rally, while IT stocks remained sluggish due to AI disruption concerns.