Indian Stock Market Rebounds Amidst US Tariff Speculations

India's stock indices rebounded Wednesday following a previous drop, as Sensex gained 592.93 points and Nifty increased by 166.65 points. Experts suggest President Trump's comments about India-US tariff negotiations positively influenced the recovery, amidst looming announcement of US reciprocal tariffs on Thursday.

The Indian stock market witnessed a significant rebound on Wednesday, shaking off the negative impact of the previous day's slump. The Sensex closed at 76,617.44 points, a notable increase of 592.93 points, equating to a rise of 0.78 percent. Simultaneously, the Nifty index closed at 23,332.35 points, climbing 166.65 points or 0.72 percent. Sectoral indices also saw a positive movement, with the Nifty realty leading the gains by 3.61 percent.

The recovery came after a dramatic slide on Tuesday, where the Sensex had plummeted by approximately 1,400 points. Investors now await the Trump administration's announcement of reciprocal tariffs, scheduled for early Thursday, which is expected to be enforced immediately upon disclosure.

President Trump's suggestions that India might reduce tariffs on American products seemed to provide a boost to the markets. This anticipation is fueled by hopes that the US might adopt a softer stance on India amid ongoing bilateral trade negotiations. Despite global uncertainties, Vinod Nair, Head of Research at Geojit Investments Limited, expressed optimism, highlighting the minimal expected impact of US tariffs on India's economy, underpinned by progress in trade talks and an eight-month high in India's manufacturing PMI for March.

Trump's reaffirmation of matching tariffs under his 'Fair and Reciprocal Plan' reflects America's determination to ensure balanced trade relations. However, India has refrained from imposing counter-tariffs on US goods, focusing instead on seeking favorable negotiations.

(With inputs from agencies.)