Overview
- The BSE Sensex surged by 1,141 points, or 1.56%, and the NSE Nifty gained 401 points, or 1.81%, during Tuesday's market opening.
- This recovery follows the worst single-day decline in 10 months on Monday, with the Sensex dropping 2,226 points due to fears of recession and inflation driven by US tariffs.
- Analysts attribute the rebound to the calming of panic selling and suggest that US President Donald Trump may reconsider his aggressive tariff policies.
- Global markets also showed signs of recovery, with Japan’s Nikkei rising 6% and other Asian indices posting gains, reflecting the interconnectedness of global trade and financial systems.
- Domestic Institutional Investors (DIIs) played a stabilizing role by purchasing ₹12,122 crore worth of equities, countering the net selling of ₹9,040 crore by Foreign Institutional Investors (FIIs).