Stock market: US Supreme Court rejects Trump tariffs; Gift Nifty jumps 320 points; analysts views

In a landmark legal decision, the US Supreme Court overturned US President Donald Trump’s broad use of emergency powers to impose high tariffs on global imports on Friday. However, the US has imposed 10 per cent global tariffs on all countries.

Global risk sentiment has improved significantly since the US Supreme Court overturned a majority of President Trump’s tariffs imposed under emergency powers, said Hariprasad K, SEBI-registered research analyst and founder of livelong wealth.

Nifty futures on the NSE International Exchange traded 320 points, or 1.25 per cent, higher at 25,886, signalling a positive start for the equity market on Monday. 

Meanwhile, on Friday, the BSE Sensex climbed 316.57 points, or 0.38 per cent, to close at 82,814.71, while the NSE Nifty added 116.90 points, or 0.46 per cent, to finish at 25,571.25.

“The development has buoyed global markets, with GIFT Nifty rising over 1%, indicating the possibility of a gap-up opening for the Nifty at the start of the week, barring any fresh adverse global triggers,” Hariprasad said.

The United States has rolled out a 10 per cent across-the-board tariff, with India likely to face the levy under the terms of its trade arrangement with Washington.

However, addressing the media after the judicial decision, Trump said, “Nothing changes. They’ll be paying tariffs and we will not be paying tariffs.” He praised Prime Minister Narendra Modi, saying he is a “great man.”

Hariprasad said the 50-pack index advanced 0.46 per cent, recovering from the pivotal 25,350 support level. “The zone is supported by substantial put open interest concentration, highlighting its importance as a strong defensive base in the near term,” he said.

“Technically, the index remains below its 100-day EMA, and RSI has slipped below 50, suggesting a neutral bias rather than a confirmed bullish shift. For the week ahead, 25,500 emerges as the immediate pivot level,” Hariprasad noted.

Sustaining above this level could pave the way for a move to 25,700. A break below 25,500, followed by a decisive breach of 25,350, may shift sentiment back to bearish,  Hariprasad said

What the Supreme Court said

After taking office, Trump declared national emergencies over illegal drug influxes and persistent trade deficits, invoking the International Emergency Economic Powers Act (IEEPA) to slap varying tariffs—from 10% to 25%—on goods from Canada, Mexico, China, and dozens of other nations.

The apex court, reviewing consolidated appeals from lower courts, held that the IEEPA’s power to “regulate… importation” does not grant the President the constitutional authority to levy taxes or raise revenue through tariffs. 

That power, the court emphasised, is a core function reserved exclusively for Congress. Consequently, the court affirmed a lower court victory in the V.O.S. Selections case and vacated the District Court’s judgment in the Learning Resources case, ordering it dismissed for lack of jurisdiction.

“While supportive global cues may contribute to a positive start to the week, the durability of the move will depend on the Nifty’s ability to reclaim and sustain above key resistance levels. Continued institutional support and improving momentum indicators will be critical in determining whether the current rebound evolves into a sustained uptrend,” Hariprasad added.

Lead to the Congress demanding that Trump seek authorisation before declaring war or authorising the use of military force against other nations, such as Iran, said Ajay Bodke, Independent market analyst.

Bodke said the Supreme Court has expressed concern about the President’s usurpation of Congress’ constitutionally granted powers to impose taxes and tariffs, but will Congress eventually develop teeth and be equally concerned about the issue.

“Many corporates are going to demand refunds, which are being heard in lower courts. Even if Trump were to use other sections to reimpose tariffs, court cases demanding refunds under IEEPA will still have a legal basis,” Bodke added.