A day after sell-off, Sensex, Nifty surge nearly 1.5% on positive global cues

The BSE Sensex rose 1.49 per cent, or 1,089.18 points, to end at 74,227.08, while the Nifty 50 gained 1.69 per cent, or 374.25 points, to close at 22,535.85. During intra-day trades, the Sensex rose 2.35 per cent, while the Nifty surged 2.42 per cent.

The domestic stock markets witnessed recovery a day after the Sensex and Nifty plunged nearly 3 per cent — marking their biggest single-day fall since June 4, 2024, amid fears of escalation in trade wars after the US President announced reciprocal tariffs.

Major Asian market indices also ended in green on Tuesday. Japan’s Nikkei 225 surged 6.01 per cent, the Shanghai Composite ended 1.58 per cent high and Hong Kong’s Hang Seng gained 1.51 per cent.

Reasons behind Sensex, Nifty rally

“Positive global market cues aided massive recovery in local benchmarks, as concerns over US trade tariffs faded a bit on hopes that most of the nations would work out ways to overcome the challenge,” said Prashanth Tapse, senior VP (Research), Mehta Equities Ltd.

Analysts said if bilateral agreements between the US and its trading partners are secured, it may result in a roll back of higher reciprocal tariffs which are to be implemented from April 9.

President Trump on Monday said that countries from all over the world were talking to America on tariffs.

“Tough but fair parameters are being set. Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate!” Donald Trump wrote on the Truth Social platform.

Among the Nifty50 companies, 49 ended in green. All broader market indices closed in green, with the Nifty Midcap 100 rising 2.11 per cent and the Nifty Smallcap 100 gaining 2.13 per cent. Even sectoral indices saw some relief from Monday’s selling pressure. The Nifty IT index rose 1.76 per cent and the Nifty Metal ended 1.52 per cent higher.

The India VIX, an indicator of the market’s expectation of volatility over the near term, declined 10.31 per cent to close at 20.44. The volatility index had zoomed 65.7 per cent to close 22.79 on Monday.

The NSE companies that gained the most were Jio Financial Services (5.61 per cent), Shriram Finance (5.21 per cent), Bharat Electronics Ltd (3.69 per cent), Adani Enterprises (3.45 per cent) and Cipla (3.44 per cent).

Foreign portfolio investors (FPIs) sold Rs 4,994.24 crore of domestic shares on Tuesday, according to the BSE’s provisional data. They had sold Rs 9,041.01 crore of equities on Monday. Domestic Institutional Investors (DIIs) purchased Rs 3,097.24 crore of shares.

Table: Movement in major indices