Sensex rises over 200 pts, Nifty above 24,800 as Trump's tariffs deemed illegal; IT, metal stocks gain

Top gainers on the Nifty included Infosys, Trent, JSW Steel, Tech Mahindra, and HCL Tech

Benchmark indices Nifty and Sensex were off to a strong start on May 29, snapping their two-day losing streak, buoyed by the US trade court's decision to block President Donald Trump’s sweeping tariff agenda. Although the administration has appealed the ruling, which halts most tariffs for now, the case could head to the US Supreme Court — a pivotal battle with potential ripple effects across trillions of dollars in global trade.

At about 9:30 am, the Sensex was up 225.58 points or 0.28 percent at 81,537.90, and the Nifty was up 58.25 points or 0.24 percent at 24,810.70. About 1668 shares advanced, 1189 shares declined, and 144 shares unchanged.

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"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," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.

Sectoral indices were largely positive in early trade on May 29, with volatility easing sharply as the India VIX dropped 4.38 percent to 17.23. The Nifty IT index led sectoral gainers with a 1.30 percent rise, followed by Nifty Metal, which gained 0.61 percent, and Nifty Realty, up 0.57 percent. Nifty Pharma, FMCG, Media, and Energy also posted modest gains, rising between 0.18 and 0.37 percent. Among financials, Nifty Bank and Nifty Private Bank edged higher by 0.15 percent and 0.16 percent, respectively, while PSU Bank slipped 0.05 percent.

The Nifty Midcap 100 and Smallcap 100 rose 0.19 percent and 0.48 percent, respectively. According to Ruchit Jain, Senior Vice President of Technical Research at Motilal Oswal, the broader market has entered a new upward trajectory following its recent low, and such phases are typically marked by increased activity in mid and smallcap stocks. "The market breadth continues to remain healthy despite the headline index consolidation," he added.

Shares of private lender IndusInd Bank Ltd edged higher even as the markets regulator Securities and Exchange Board of India (SEBI) barred former IndusInd Bank MD&CEO, Sumant Kathpalia, former Deputy CEO Arun Khurana, and three other former senior officials of the bank for alleged insider trading.

Indian Railway Catering and Tourism Corporation (IRCTC) stock gained 1 percent after it reported a strong set of numbers for the March quarter, with net profit rising 26 percent year-on-year to Rs 358 crore, helped in part by a one-time gain of Rs 45.68 crore. In the year-ago period, the company had posted a profit of Rs 284 crore.

"Nifty continues to oscillate between the matching lows around 24,450 and the matching highs near 25,100. This range remains crucial, and any breakout beyond it could reignite momentum. However, testing these levels on the expiry day itself appears unlikely and breaking it would be a tough ask," Rajessh Bhosale of Angel One said. "In the near term, immediate support is seen around 24,600, which also aligns with the 20DEMA. On the upside, the psychological 25,000 mark acts as immediate resistance. These two levels are expected to be pivotal during the expiry session," he added.

For Bank Nifty, the crucial support rests at 55,000 — and a clear break below it might swing open the gates for a stronger selloff wave. On the flip side, a bold rally past 55,500 could spook the bears into covering, potentially shooting the index towards the psychological 56,100 mark and igniting brief bursts of long-side trades.

Top gainers on the Nifty included Infosys, Trent, JSW Steel, Tech Mahindra, and HCL Tech, while the losers were Tata Consumer Products, Apollo Hospitals, Bajaj Finance, HDFC Life, and Jio Financial.