How GIFT Nifty Jumped 486 Points After US Supreme Court Tariff Ruling

Synopsis: GIFT Nifty witnessed a massive relief rally on February 21, 2026, surging nearly 1.9% to cross the 25,880 mark. The spike follows a landmark US Supreme Court decision striking down President Donald Trump’s broad global tariffs, a move expected to significantly ease trade pressures for Indian exporters.

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The GIFT Nifty index, a key early indicator for the Indian stock market, soared by 486 points in its latest session, reaching a high of ₹25,897. This bullish momentum comes in direct response to the US Supreme Court’s 6-3 ruling, which declared the use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose broad-based tariffs as unconstitutional. The decision effectively dismantles the legal basis for the sweeping levies that had recently battered global trade.

The Impact of the SCOTUS Ruling

The US top court ruled that the power to impose tariffs resides exclusively with Congress during peacetime, stating the President lacks the authority to declare an economic emergency for such broad tax measures. For India, this provides a massive “bargaining chip” in ongoing trade negotiations.

• Relief for Exporters: Sectors like IT, textiles, and gems & jewelry, which faced potential duties of 10% to 50%, saw immediate positive sentiment.
• FII Inflows: Analysts expect a reversal in Foreign Institutional Investor (FII) outflows, which had exceeded ₹1.8 lakh crore in 2025 due to tariff-induced uncertainty.

GIFT Nifty Technical Levels

GIFT Nifty opened at ₹25,399.50 and climbed steadily to settle at ₹25,886.00 by 2:30 AM IST on February 21. This 1.91% jump indicates that the Nifty 50 could see a gap-up opening of over 300 points in the next domestic trading session. Technically, the index has moved well above its 5-day and 20-day Simple Moving Averages (SMA), signaling a strong short-term bullish trend.

Market Outlook and Trade Dynamics

While the Supreme Court ruling offers immediate relief, the White House has already signaled an “adjustment process,” with the US President signing a new 10% global tariff order under Section 122 of the Trade Act, set to take effect on February 24. However, the existing India-US interim trade agreement remains intact. Investors are now shifting focus to how these legal shifts will influence the long-term bilateral trade deal, which aims to provide permanent stability for Indian markets.