The Indian stock market rebound on Tuesday was a welcome relief after Monday’s historic crash precipitated by new US tariffs. Driven by a 1,283-point rally in the Sensex and a 415-point rise in the Nifty, the rebound allowed investors to regain some confidence. Although volatility is still an issue, general global cues and India’s good fundamentals provided comfort that the panic could be fleeting. The rebound also comes at a time when there are simmering US-China trade tensions, with President Trump signaling the possibility of raising tariffs on Chinese imports by 50%, creating anxiety in markets.
Global Sentiment Lifts Dalal Street
The rally on Tuesday was not triggered by local drivers. Peer markets in the region such as Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi recorded robust gains after the fall on Monday. These signals lifted Dalal Street investor sentiment. Back home, almost all 30 Sensex stocks were in the positive, led by TCS alone. Top gainers were Adani Ports, Bajaj Finserv, Axis Bank, and Tata Steel. The bounce was also aided by robust DII inflows, which beat foreign outflows. While FIIs offloaded more than ₹9,000 crore worth of equities on Monday, DIIs purchased more than ₹12,000 crore, as per exchange data.
Indian Market Bounces Back with Conviction
The bounce came in the face of persistent concerns over US-China trade wars. Trump’s threat of tariffs can hurt Chinese exports severely, but analysts feel Indian stock market will remain insulated—due to ongoing bilateral negotiations with Washington. India’s economic fundamentals are also keeping investor jitters in check. The Economic Survey projected 6.3%–6.8% GDP growth for FY25, while the government is expecting 6.5% in FY26. Meanwhile, Brent crude’s minor increase still keeps oil prices in check for India.
The larger worry today is not tariffs, but volatility. The India VIX rose almost 70%, indicating consistent jitters. While experts expect resistance at 22,660 on the Nifty, long-term gains will hinge on worldwide tranquility and stable policy cues. For the moment, India has avoided a deeper rout—but investors must prepare for a rough ride.
