Indian markets recovered on Tuesday after a huge crash on Monday in fear of a trade war triggered by tariffs from the US against its trading partners. Tuesdays’ recovery was spearheaded by bargain hunting and a general recovery in Asian markets.
Indian Markets Rebound Sensex and Nifty Rally Over 2%
The US markets were the first to have eased a bit following the shock of the tariffs declared by President Donald Trump. Shortly after the US futures gains on Tuesday, Japan’s index Nikkei 225 rose by 6 per cent.
Investors and traders in India also took an optimistic stance today, and both benchmark indexes – Sensex and Nifty – are rising over 2%. At 3.30 pm, the Sensex closed at 74,227.08 while the Nifty regained 374.25 points to close at 22,535.85.
The Nifty and Sensex had plummeted 3.2% and 3% respectively on Monday their largest single-day fall in 10 months as a global recession fear gripped the markets in wake of fresh US tariffs.
Why Did the Indian Markets Rise?
The Indian markets regained their poise just hours after US President Donald Trump announced that Japan would be sending a delegation for negotiations, reviving hopes that Washington will ease its tariff line.
But the US President also promised extra 50% duties on Chinese imports, if Beijing continues to impose retaliatory tariffs, topping optimism.
Analyst Insights on the Rebound
Analysts explain that the rebound was in the pipeline since the markets are already oversold.
“The rebound comes as no surprise as markets are oversold and remain ripe for a rebound led by tariff-agnostic companies and sectors,” said Yogesh Kansal, cofounder of online trading platform Appreciate.
IT, Banking, and Titan Drive Gains
Although all 13 large Indian sectoral indexes traded higher, the comeback was dominated by IT and banking-finance shares. Infosys, L&T, HCL Tech and Tech Mahindra were up at least 3% from yesterday’s close.
Titan also rose 5% after the jeweller and watchmaker announced standalone revenue grew 25% in the March quarter on the back of rising gold prices.
