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Highlights:
Nifty 50 and Sensex rebound sharply after previous session's steep fall
All sectoral indices post strong intraday gains amid stabilized global cues
Global equities recover as concerns ease over recent U.S. trade measures
Domestic equity benchmarks saw a significant recovery during Tuesday’s trading session, with the Nifty 50 and BSE Sensex rebounding strongly following their steepest single-day losses in months. Broad-based participation across all sectoral indices supported the upward movement, as equities regained momentum after being rattled by overseas trade-related developments.
This upward shift followed sharp declines in the previous session, attributed to a global selloff triggered by recent U.S. tariff implementations. The benchmarks had fallen more than most regional indices, underscoring the intensity of sentiment-driven volatility. However, the current session reflected improved risk appetite, with consistent buying observed across financials, technology, energy, and infrastructure segments.
Sector-Wide Rally
All major sectoral indices advanced, each registering gains that outpaced recent averages. Financial services led the surge, with private and public lenders posting notable intraday recoveries. The automobile segment also saw traction, aided by renewed confidence in cyclical segments.
Information technology stocks reversed their prior underperformance, while energy and metal counters rallied in tandem with positive global cues. Broader markets moved in line with headline indices, with mid-cap and small-cap indices also trending higher.
Investors appeared to focus on domestic fundamentals, particularly as anticipation builds around the upcoming Reserve Bank of India monetary policy decision. Scheduled for the following day, this event remains a focal point for market participants seeking further direction on interest rate actions.
Global Market Sentiment
Global equity indices staged a recovery after witnessing heightened volatility. In the Asia-Pacific region, indices including Japan’s Topix and Australia’s benchmark made noticeable gains. The ASX 200 (Ticker: XJO) posted positive movement, supported by strength in commodities and financial shares.
European futures reflected optimism as well, while U.S. equity futures showed an improving trend. The rebound in S&P 500 futures provided a supportive backdrop to regional markets, following stability in U.S. Treasury yields. Overall, the broad-based improvement in global sentiment coincided with easing concerns regarding international trade restrictions.
Currency and Bond Movement
The domestic currency remained relatively stable against major peers, aided by positive capital flows and improved global sentiment. Bond yields showed limited movement ahead of the RBI's interest rate decision, as market participants remained cautious.
Outlook Ahead of Central Bank Decision
The Reserve Bank of India’s policy announcement is closely tracked for any shifts in stance or rate decisions. While no indication of direction is provided, all eyes remain on how the central bank addresses macroeconomic indicators such as inflation and economic growth.
Market participants will also continue monitoring geopolitical and trade developments globally, especially those originating from major economies. Combined with domestic fiscal and monetary policies, these factors are expected to influence near-term movements in equity benchmarks.
As broader risk sentiment stabilizes and global equities recover from the prior session’s turbulence, Indian markets remain attentive to both domestic and global cues shaping future price action.
