Indian Stocks Rebound Amid Global Trade Tensions

Indian stock indices bounced back on Tuesday, with Sensex and Nifty ending higher after a previous steep decline. This surge, however, might be short-lived as investors await clarity amidst global trade tensions spurred by Trump's tariffs. The RBI policy and corporate earnings will remain focal points.

In a significant rebound, Indian stock indices recovered much of the ground lost in the previous session, closing higher on Tuesday. The Sensex surged by 1,089 points, equivalent to a gain of 1.5 percent, to reach 74,227 points. Similarly, the Nifty climbed 374.25 points, up 1.69 percent, ending at 22,535.85.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, investors are likely to remain in a wait-and-watch mode as they seek clarity in a turbulent market. This resurgence followed a turbulent start to the week when Indian stocks faced intense selling pressure due to President Trump's reciprocal tariffs, which precipitated a global sell-off, sending the Sensex plummeting by over 2,200 points.

Trump's tariff policies, which aim for reciprocity in international trade, have caused widespread market jitters, igniting fears of escalating trade tensions and potential economic slowdown. Amidst this uncertainty, market attention is gradually pivoting towards the Reserve Bank of India's (RBI) upcoming monetary policy decision and the corporate earnings season. Jaykrishna Gandhi of Emkay Global Financial Services suggests that another rate cut and regulatory easing measures are conceivable, considering inflation trends.

(With inputs from agencies.)