Equity benchmark indices rebounded in early trade on Thursday following a two-day losing streak, as gains in Asian markets and encouraging developments regarding US trade tariffs buoyed investor sentiment. The BSE Sensex surged 504.57 points to reach 81,816.89 in early deals, while the NSE Nifty climbed 137.25 points, touching 24,889.70.
Foreign institutional investment also lent support to the rally, with overseas funds purchasing equities worth ₹4,662.92 crore on Wednesday, according to exchange data. Among the top performers in the 30-share Sensex pack were Infosys, Tata Steel, Tech Mahindra, HCL Technologies, Tata Consultancy Services, Sun Pharma, Tata Motors and HDFC Bank. On the other hand, UltraTech Cement, Bajaj Finance, Bajaj Finserv and Nestlé traded in the red.
Investor confidence received a further boost from the US, where a federal court barred President Donald Trump from enforcing broad tariffs under emergency powers legislation.
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“The US federal court striking down the reciprocal tariffs is a clear message that the president cannot ride roughshod over markets and economy with his questionable decisions,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“This court ruling is the second big blow to President Trump after the blow delivered by the bond market which forced the Trump administration to pause the tariffs for 90 days. From the market perspective, this is a positive development," he added.
Asian markets reflected similar buoyancy, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng all trading in positive territory. However, Wall Street ended lower on Wednesday amid caution ahead of key economic data.
Meanwhile, domestic industrial output remained tepid. Official figures released on Wednesday revealed that India’s industrial production growth slowed to 2.7 per cent in April 2025, weighed down by a lacklustre performance in the manufacturing, mining and power sectors. In commodities, global oil benchmark Brent crude rose 1.11 per cent to trade at USD 65.62 per barrel.
On Wednesday, the BSE Sensex had declined 239.31 points to close at 81,312.32, while the NSE Nifty had fallen 73.75 points to settle at 24,752.45.