Indian Markets Snap Losing Streak as US Court Blocks Tariffs, Sensex Gains 320 Points

Indian equity benchmark indices, the BSE Sensex and NSE Nifty 50, concluded Thursday’s trading session with significant gains, halting a two-day decline, largely driven by a positive shift in global investor sentiment after a US federal court invalidated former President Donald Trump’s proposed reciprocal tariffs.

Market Rebounds on Global Cues and Tariff News

The Indian stock market opened firmly in the green on Thursday, May 29, 2025. The BSE Sensex was up approximately 441 points (0.54%) to trade at 81,753.20, and the Nifty 50 climbed around 116 points (0.47%) to 24,868.00 in early trade around 9:18 AM IST. This positive momentum was largely sustained throughout the day, albeit with some volatility often associated with monthly derivatives expiry.

The primary catalyst for the market’s upbeat performance was international news. A US federal court, on Wednesday (local US time), blocked former President Donald Trump from imposing ‘sweeping’ reciprocal tariffs. The court ruled that the former President overstepped his authority under the 1977 International Emergency Economic Powers Act (IEEPA). This development was widely interpreted as a positive sign for global trade, potentially reducing trade tensions and market uncertainty.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented that “Trump’s tariff-related news continues to impact markets. The US Federal court striking down the reciprocal tariffs is a clear message that the maverick president cannot ride roughshod over markets and economy with his questionable decisions.” He further noted this as a “positive development” from the market’s perspective.

The positive sentiment from the US court ruling rippled across Asian markets. Japan’s Nikkei rose 1.34% and South Korea’s Kospi gained 1.23%. US stock futures also advanced. Consequently, the U.S. dollar saw an upswing, while gold prices declined due to improved risk sentiment.

Closing Bell: Sensex and Nifty Performance

By the close of trading on May 29, 2025, the BSE Sensex settled at 81,633.02, a gain of 320.70 points or 0.39%. The NSE Nifty 50 ended the day at 24,833.60, up by 81.15 points or 0.33%. These closing figures were widely reported across multiple Indian financial news outlets, citing official exchange data.

The trading session was marked by fluctuations, characteristic of a monthly F&O expiry day. However, late session recovery, partly attributed to F&O expiry-led covering, helped solidify the gains.

Sectoral Activity and Broader Markets

The rally was not confined to the headline indices. Broader markets also participated in the upward trend. The BSE MidCap index gained 0.48% and the BSE SmallCap index rose by 0.39% by the day’s end.

Sector-wise, performance was largely positive. Key gaining sectors included Metal, Realty, Pharma, and IT. The Nifty IT and Metal indices were reported to be up around 0.7% each during morning trade. Vinod Nair, Head of Research at Geojit Financial Services, noted that “IT and Pharma sectors benefited from potential trade tension reduction.” The primary declining sector for the day was FMCG.

Investor Activity and Market Outlook

Foreign Institutional Investors (FIIs) were net buyers of Indian equities on the preceding day (Wednesday, May 28), purchasing shares worth ₹4,663 crore. Domestic Institutional Investors (DIIs) also showed strong buying interest, with net purchases amounting to ₹7,912 crore on the same day. However, FIIs’ position in the futures market indicated an increase in net short positions from ₹67,419 crore on Tuesday to ₹78,987 crore on Wednesday.

Experts suggest a period of consolidation might be on the cards. VK Vijayakumar advised that the “Nifty is consolidating in a 500 point range within 24500 - 25000. A breakout or breakdown from this range appears difficult in the near-term.” He also cautioned investors to “not chase mid and smallcaps without any concern for valuations,” while acknowledging that “quality mid and smallcaps have the potential to outperform.”

The market had experienced a two-day decline prior to Thursday’s rebound, with the Nifty 50 closing at 24,752.45 and the Sensex at 81,312.32 on Wednesday, May 28.

What to Watch Next

Looking ahead, investors will be keeping a close eye on several factors:

• Global Market Trends: Continued reaction to the US trade policy developments and overall global economic indicators will be crucial.
• Domestic Macroeconomic Data: Upcoming releases, such as PMI data, will provide further insights into the health of the Indian economy.
• Crude Oil and Currency: Movements in global crude oil prices and the Indian Rupee’s exchange rate against the US dollar will continue to influence market sentiment.
• Technical Levels: For the Nifty 50, the range of 24,500 (support) and 25,000 (resistance) will be key levels to monitor for potential breakouts or breakdowns.
• FII/DII Flows: The investment patterns of foreign and domestic institutional investors will remain a significant driver of market momentum.

The market’s ability to sustain this rebound will depend on a confluence of these domestic and international factors in the coming days.

---

Sources:

• Times of India, May 29, 2025, 09:21 IST (Content browsed: “Stock market today: Nifty50 above 24,850; BSE Sensex rises over 500 points”)
• Closing figures for Sensex (81,633.02, +320.70 pts, +0.39%) and Nifty (24,833.60, +81.15 pts, +0.33%) for May 29, 2025, were corroborated by search result snippets from Times of India (updated 16:31 IST), The Hindu, and NDTV Profit.
• Business Standard, Last Updated: May 29 2025 | 10:37 AM IST (Content browsed: “Stock Market LIVE: Bajaj twins, Axis Bank, SBI weigh on Sensex, up 50 pts; MidCap index turns red”)
• NDTV Profit, May 29 2025, 07:52 AM IST (Content browsed: “Stock Market Live: GIFT Nifty Indicates Positive Open; IndusInd Bank, Gensol, Bajaj Auto In Focus”)

---

This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.