Asian Indices Attempt Recovery, Sensex Climbs Over 1,000 Points, Nifty About 2 Per Cent Higher

The Indian stock markets seemed to begin Tuesday with a positive note. The BSE Sensex climbed more than 1,200 points to trade near 74,350, while the NSE Nifty50 attempted a rally with gains of nearly 400 points to inch closer to 22,550.

After seeing the bloodbath on Monday, investors will finally get some breath of relief today. In the previous trading session, the Sensex crashed more than 2,000 points to close for the session below 73,150, while the Nifty settled over 3 per cent lower. During the session, both the benchmark indices plummeted more than 5 per cent, making the traders witness their worst nightmare come true. 

Global Markets And What Went Down

However, sentiment lifted on Tuesday and Asian markets began trading higher. Japan's Nikkei surged 6 per cent in the morning hours, after the benchmark crashed to a one-and-a-half-year low reached on Monday. While S&P500 and the Dow ended Monday's session in red, the Nasdaq closed the session slightly higher. The US semiconductor index also jumped 2.7 per cent overnight and this momentum was carried into Asia, where futures for both the S&P and Nasdaq climbed more than 1 per cent, fuelling optimism across Japanese markets, reported Reuters.

The recent market turmoil was largely attributed to concerns following US President Donald Trump’s Liberation Day tariff announcement, which dragged both the Nikkei and Topix down by about 13 per cent from their earlier levels. Japanese Prime Minister Shigeru Ishiba revealed that he had spoken directly with Trump, expressing discontent over the tariff measures. “He expressed disappointment with the tariff policies and urged him to reconsider,” Ishiba noted during a Monday briefing.

Hopes that diplomatic negotiations might ease some of the pressure from US tariffs added to Tuesday’s rally. According to Ikeda, this optimism served as another catalyst for buying.

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Domestic Markets Today

On the 30-share Sensex, PowerGrid and Nestle remained the only stocks in red. On the other hand, the biggest gainers so far included Titan, Bajaj Finserv, SBI, Infosys, and Bajaj Finance. 

In the broader markets, the Nifty Midcap Select rallied 2.01 per cent. Sectorally, the Consumer Durables and Financial Services Ex-Bank indices drove the gains and climbed 2.89 per cent and 2.77 per cent respectively.

The Indian rupee, however, continued to depreciate and slid 7 paise to 85.83 against the US dollar in early trade on Tuesday. This downfall was attributed to massive withdrawal of foreign funds triggered by the global meltdown and escalations in trade tensions. A bounce back in the crude oil prices also weighed down on the domestic unit, even while a weaker American dollar and recovery in the domestic markets provided support to the Indian rupee.

Meanwhile, the Reserve Bank of India's Monetary Policy Committee (MPC) meeting is underway. The panel is expected to reveal its decision about key rates and fiscal policy ahead on April 9, 2025. Investors are keenly awaiting if the committee will introduce another cut in the repo rates like it decided in its previous meeting in February.

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