Mumbai: The Indian equity markets closed higher on Monday as domestic investors welcomed a major U.S. judicial ruling that struck down President Donald Trump’s sweeping "reciprocal" tariff policy, easing fears of an immediate trade war.

The BSE Sensex climbed 479.95 points, or 0.58%, to settle at 83,294.66, while the broader NSE Nifty 50 advanced 141.75 points, or 0.55%, to end at 25,713.00. The rally was driven by banking and consumer stocks, which outweighed continued selling pressure in the technology sector.

Market sentiment improved after the U.S. Supreme Court ruled late Friday that the Trump administration lacked the legal authority to impose broad global tariffs under national emergency laws. While Trump immediately responded by announcing a more modest 15% surcharge under different trade provisions, investors viewed the court’s intervention as a sign of institutional checks on unilateral trade policy.

"The U.S. Supreme Court's ruling against Trump's reciprocal tariff policy was welcomed by domestic markets," said Vinod Nair, Head of Research at Geojit Investments Limited. He added that while a weaker U.S. dollar and cooling Treasury yields are providing near-term support, "investors are awaiting more clarity on Trump's revised strategy and the scope of renegotiations by other nations."

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Sectoral Performance and IT Struggles

Despite the broader rally, the Nifty IT index fell 1.4%, continuing its recent slide as unresolved concerns over artificial intelligence-driven disruptions weighed on software exporters. Metal stocks also dipped 0.2%.

In contrast, the Nifty PSU Bank index surged 1.3%, leading a recovery in financial shares. Other key sectors, including pharmaceuticals, infrastructure, and oil and gas, added 0.5% each.

Bullion Surges on Trade Uncertainty

The legal turmoil in Washington sparked a flight to safety in the commodities market, sending precious metals to three-week highs.

On the Multi Commodity Exchange (MCX), gold futures for April delivery jumped 1.9% to approximately ₹1.59 lakh per 10 grams. Silver prices saw even more dramatic gains, surging 4% to settle near ₹2.63 lakh per kilogram.

"Gold and silver prices climbed to a three-week high on Monday afternoon," said Satish Dondapati, Fund Manager for ETFs at Kotak Mutual Fund. He noted that the U.S. court decision pressured the dollar and boosted safe-haven demand, particularly with geopolitical tensions remaining high in the Middle East.

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On the international COMEX exchange, silver rose to $86.01 per ounce, while gold traded up at $5,130 per ounce. Dondapati observed that while the Lunar New Year holiday in China resulted in lower trading volumes and sharper price swings on Monday, activity is expected to normalise as the week progresses.

"Going forward, developments related to tariffs, expectations on interest rate cuts, and updates on U.S.-Iran nuclear talks will continue to influence bullion prices," Dondapati added.

With inputs from ANI