India's equity benchmarks eye positive open after US court blocks Trump tariffs
May 29 (Reuters) - India's benchmark indexes are poised for a positive open on Thursday, tracking gains in broader Asian peers and Wall Street futures, as investors cheered a U.S. federal court's decision to block President Trump's proposed "Liberation Day" tariffs.
Gift Nifty futures were trading at 24,837.5, as of 8:09 a.m. IST, indicating a firm start above the Nifty 50's close of 24,752.45 on Wednesday.
The Court of International Trade ruled that President Trump exceeded his authority with the proposed tariff plan. Although the White House has appealed the decision, the ruling raised hopes that Trump may scale back from imposing the highest tariff levels he had threatened, lifting global risk sentiment.
The U.S. court decision also boosted the U.S. dollar, while safe-haven gold edged lower as investor risk appetite improved.
Asian shares and Wall Street futures advanced, supported by chipmaker Nvidia's (NVDA.O), opens new tab quarterly sales beat and positive revenue outlook released after U.S. market hours.
Meanwhile, minutes from the latest Federal Reserve meeting revealed concerns about inflation risks tied to Trump's trade policy. Market pricing now sees only a 22% chance of a July rate cut, while the probability for a September cut stood at 60%, having been fully priced a month ago.
Back home, the Nifty 50 has shed 0.4% over the past three sessions, consolidating near the 25,000 mark.
The index has gained 1.7% in May, on track for its third consecutive monthly gain, supported by robust foreign portfolio investor (FPI) inflows and sequential earnings growth in the March quarter.
FPIs net bought 46.63 billion rupees ($546 million) in equities on Wednesday, pushing total May inflows near $2 billion.
While the market construct remains positive, volatility is expected to remain elevated through the day amid the monthly derivatives expiry, as traders roll over or square off their positions, two analysts said.
** India's market regulator bars former top executives of IndusInd Bank (INBK.NS), opens new tab from securities trading until further orders over alleged insider trading
** Cummins India (CUMM.NS), opens new tab posts a fall in quarterly profit as rising costs offset price hikes
** SAIL (SAIL.NS), opens new tab posts quarterly drop on inventory costs
($1 = 85.3860 Indian rupees)
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