GIFT Nifty surges 400 points after SCOTUS outlaws Trump tariffs

Amid India-US trade tensions in late 2025, Sensex and Nifty 50 fell nearly 3% in a single month, with FIIs pulling out over $22 billion in 2025 alone.

GIFT Nifty surged nearly 400 points from an intraday low on Friday, after the US Supreme Court outlawed US President Donald Trump's global tariffs—a move that gives New Delhi a bargaining chip in negotiating the India-US trade deal.

The narrative of India’s stock market over the last year has been a volatile tug-of-war between protectionist "tariff shocks" and the relief of a long-awaited trade deal. While the market was severely battered throughout 2025, the recent breakthrough on February 2, 2026, has sparked a massive recovery.

During the height of the trade tensions in late 2025, the Sensex and Nifty corrected by nearly 3% in a single month, with FIIs (Foreign Institutional Investors) pulling out over $22 billion in 2025 alone. The rupee plunged to record lows multiple times over.

Analysts estimated that Indian equities underperformed their emerging market peers by nearly 40% during this period due to the lack of trade clarity.