Updated Feb 22, 2026 23:29 IST
The Indian stock market is expected to have a positive start on Monday after the US Supreme Court canceled President Trump’s global tariff order.
The Indian stock market is expected to have a positive start on Monday after the US Supreme Court canceled President Trump’s global tariff order. However, there may remain some uncertainty about the future direction due to Trump’s announcement of increasing tariffs on all American imports from 10 percent to 15 percent. Brokerage firm Elara Capital says that the US Supreme Court (SCOTUS) has declared the tariffs imposed under IEEPA illegal. After this, US President Donald Trump has imposed 10 percent tariff under Section 122. Elara Capital believes that this decision is positive for India, as the effective tariff rate on India has come down to 9.1 percent, which had earlier reached a high of 32.7 percent. Now India has come at tariff level equal to or lower than countries like Vietnam, Cambodia, Thailand and Bangladesh.
There is a maximum limit of 150 days and a 15 per cent tariff cap under Section 122, although uncertainty still remains, the report said. The issue of possible tariff refund of about $150-155 billion is still not resolved. The possible visit to China is being considered an important factor in this context. Elara maintains the Dollar Index (DXY) in the range of 95-100 for the calendar year 2026 (CY26), which may provide support to the Euro, Pound and Asian currencies. The Federal Reserve has maintained its estimate of a rate cut of 75 basis points in CY26, with most of the cuts likely to happen in the second half of the year.
‘Buy’ rating maintained on UPL Limited
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Elara Capital, on the other hand, has maintained ‘Buy’ rating on UPL Limited and a target price of Rs 980. However, the brokerage says that the company’s recent restructuring has neither simplified the structure nor is there any possibility of immediate value unlocking. Under the plan, the India and global crop protection businesses will be separated and transferred to a new entity ‘UPL Global’, which is likely to be listed in Q1FY28.
According to the report, UPL Limited will be converted into a holding company, due to which the holding company discount may be applicable on it. Elara believes this move gives a negative signal in the short term, as it shifts the focus away from expectations of financial discipline and onto the shortcomings of the restructuring. However, in the long term, improving profitability and deleveraging will remain the key value drivers for the company.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
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