New Delhi: Indian stock indices made a significant recovery on Tuesday following the sharp decline experienced in the previous session. The Sensex ended the day up by 1,089 points, or 1.5 percent, reaching 74,227 points.
The Nifty index closed at 22,535.85 points, gaining 374.25 points, which is an increase of 1.69 percent.
"Investors are likely to remain in a wait-and-see approach as it will take time for the situation to clarify," noted V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On the previous day, Indian stocks faced a severe downturn as the week began, primarily due to the reciprocal tariffs announced by Trump. This led to a global sell-off in equities, with the Sensex plummeting by over 2,200 points.
The announcement of these tariffs last week has created ripples across various asset classes worldwide, including in India. Global equity markets took a hit, particularly in response to Trump's extensive trade tariffs, which raised concerns about escalating trade tensions and a potential economic downturn.
Looking ahead, market attention is expected to gradually shift towards the Reserve Bank of India's monetary policy and the forthcoming corporate earnings season.
"RBI's monetary policy may see another rate cut, as inflation rates have been consistently below the RBI's projections, along with potential further regulatory easing," stated Jaykrishna Gandhi, Head of Business Development for Institutional Equities at Emkay Global Financial Services.
Indian stock indices ended the previous week on a negative note, impacted by the reciprocal tariffs announced by Trump and the associated uncertainties. The Sensex experienced a decline of approximately 2,100 points throughout the week.
Since beginning his second term, President Trump has consistently reinforced his position on tariff reciprocity, stating that the United States will impose tariffs equivalent to those set by other nations, including India, to promote equitable trade.
