The Indian stock market ended trading on Tuesday on a much more optimistic note. After suffering massive losses in the previous trading session, the domestic markets began trading today with an uplifted sentiment. This recovery was seen across Asian indices as they tried to rally from the last session's lows. 

The domestic markets were supported by bargain buying and a broader positive sentiment in Asian indices, as investors remained hopeful of a resolution in global trade conflicts. This helped markets recover from their worst drop seen in 10 months. All eyes are now on the Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) panel, which is expected to reveal its decision on key interest rates on Wednesday. Notably, the MPC slashed the repo rate by 25 basis points in its previous meeting in February 2025. 

Domestic Markets

The BSE Sensex closed trading today above 74,200, climbing nearly 1,100 points or 1.5 per cent in the session, while the NSE Nifty50 ended the day at 22,536, jumping more than 350 points or 1.69 per cent.

On the 30-share Sensex, PowerGrid remained the only laggard and ended 0.14 per cent lower. Meanwhile, the gainers of the day included Titan, Bajaj Finance, SBI, L&T, and Bajaj Finserv.

In the broader markets, the Nifty Midcap Select drove the gains and settled 2.53 per cent higher. Sectorally, the Financial Services Ex-Bank index dominated and ended 3.34 per cent higher, followed by the Midsmall Financial Services index which clocked gains of 3.03 per cent.

Jaykrishna Gandhi, Emkay Global Financial Services, explained, "Market sentiment remains upbeat as investors bet on a steady policy from the central bank and strong domestic fundamentals. India is getting ready for the RBI MPC tomorrow, where we expect 25bps rate cut (in line with consensus). We also expect a possible change in stance to ‘accommodative’ to give directional easing bias."

Also Read : Global Trade Worries Escalate, But India Expects To Remain Steady In FY26, Says Report

Global Developments And Macro Indicators

In Asian markets, Japan's Nikkei 225 soared 6 per cent on Tuesday, recovering from its lowest levels in 2018. This turnaround came after US President Donald Trump suggested that Japan would be possibly engaging in trade discussions with the US. This raised hopes of a resolution in the ongoing tariff dispute. 

While this development lifted sentiment, Trump simultaneously issued a stark warning, stating that tariffs on Chinese goods could go up by another 50 per cent if Beijing continued with retaliatory actions.

European markets were quoting higher. Meanwhile, foreign institutional investors (FIIs) dumped Indian equities worth Rs 9,040.01 crore on Monday, while domestic institutional investors (DIIs) bought shares worth Rs 12,122.45 crore, exchange data revealed. The global oil benchmark Brent crude climbed 0.22 per cent to $64.35 a barrel.