Sensex, Nifty recover after steep slump amid renewed hopes for US tariff negotiations

MUMBAI: After a sharp decline on Monday, India’s benchmark equity indices–BSE Sensex and Nifty50–rebounded on Tuesday. The recovery is driven by positive trade discussions between nations, which also lifted Asian stock markets.

At 11.50 am, the BSE Sensex was higher by about 800 points at 73,924, and the Nifty50 was at 22,418, ahead by about 245 points. Sensex hit an intraday high of 74,422 and Nifty hit a high of 22,578.

Narinder Wadhwa, Managing Director & CEO of SKI Capital services said that the recovery is primarily driven by bargain hunting and positive cues from Asian markets amid renewed hopes for US tariff negotiations. This rebound follows a significant decline on Monday, where the Nifty 50 and Sensex fell by 3.2% and 3%, respectively, marking their largest single-day drops in ten months.

“President Donald Trump announced upcoming tariff negotiations with Japan. However, his threat of additional tariffs on Chinese goods tempered optimism. Asian markets responded positively, with Japan’s Nikkei 225 surging by 6.3%,” said Wadhwa.

All 13 major Indian sectoral indices were in positive territory, with small-cap and mid-cap indices also gaining around 1.2% each. Despite the initial surge, the market corrected later in the session, reflecting ongoing caution among investors amid global trade uncertainties.