US Supreme Court Strikes Down Trump Tariffs: Sensex May Jump 500 Points; Gold and Silver Prices in Focus
The US Supreme Court’s decision to strike down reciprocal tariffs imposed during the Donald Trump administration has sparked optimism across global markets. Market experts believe Indian exporters may benefit significantly from the ruling, with the BSE Sensex expected to open over 500 points higher when trading resumes.
However, in a swift development, former US President Donald Trump approved a fresh 10% global tariff on all countries just hours after the verdict. This series of policy shifts has introduced fresh volatility in global trade dynamics, impacting equities, gold, and silver prices worldwide.
Indian Stock Market Outlook: Gap-Up Opening Likely
According to market analysts, the Supreme Court’s ruling provides major relief to Indian exporters, particularly those heavily dependent on the US market.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said the earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA) had impacted Indian exports worth over $50 billion. Labour-intensive sectors such as textiles and gems had faced notable pressure.
“The decision effectively removes the 18% reciprocal tariff agreed under the India-US trade framework. Nearly 55% of India’s exports to the US will now attract only 10% duty,” she noted.
Meanwhile, Sugandha Sachdeva, Founder of SS WealthStreet, clarified that the verdict does not impact sector-specific tariffs imposed under separate statutory provisions. Duties on steel, aluminium, automobiles, semiconductors, and other strategic sectors remain intact.
Gift Nifty Signals Strong Opening for Dalal Street
Market indicators suggest strong bullish sentiment. While the Indian stock market was closed during the US developments, Gift Nifty reflected positive momentum.
Avinash Gorakshkar, SEBI-registered fundamental equity analyst, highlighted that the Nifty 50 closed at 25,571, whereas Gift Nifty futures closed around 25,764 — nearly 200 points higher.
“This signals a clear gap-up opening. The Sensex could open over 500 points higher on Monday,” he said.
The positive global cues and improved export outlook may support banking, IT, textiles, and export-oriented stocks in early trade.
Gold and Silver Prices: Safe-Haven Demand to Stay Strong
While equities may rally, precious metals are also expected to remain firm due to ongoing uncertainty.
Sugandha Sachdeva said the Supreme Court ruling, followed by a fresh 10% tariff announcement, has injected renewed uncertainty into global trade policy. Additionally, geopolitical tensions and military developments in the Middle East continue to support safe-haven demand.
“Trade uncertainty, geopolitical risk premium, and macroeconomic crosscurrents provide a structurally supportive backdrop for gold and silver,” she said.
Gold Price Outlook Today
Technically, gold remains well supported at:
- $4,880 per ounce (international market)
- ₹1,49,800 per 10 grams (domestic market)
Immediate resistance levels:
- $5,100–$5,120 per ounce
- ₹1,61,000 per 10 grams
A sustained breakout above resistance could push prices toward:
- $5,350 globally
- ₹1,75,000 per 10 grams domestically
Silver Price Outlook Today
Silver is currently finding support at:
- $70 per ounce
- ₹2,25,000 per kg
Resistance is seen at:
- $86 per ounce
- ₹2,75,000–₹2,78,000 per kg
A decisive breakout could trigger a fresh rally toward ₹3,50,000 per kg, especially if trade tensions escalate further. Analysts also expect improved liquidity as Chinese market participants return after the Lunar New Year holiday, which may add directional momentum.
What This Means for Investors
- Export-oriented Indian companies may benefit from reduced tariff pressure.
- Sensex and Nifty are likely to open with strong gains.
- Gold and silver may remain supported amid global trade and geopolitical uncertainty.
- Sector-specific US tariffs on strategic industries remain in place.
Investors are advised to monitor global trade developments and geopolitical cues closely, as volatility is expected to remain elevated in the near term.
0 Comments