The NSE Nifty rose 374.25 points, or 1.7%, to close at 22,535.85, in its highest single-day gain since January 2. The BSE Sensex rose 1,089.18 points, or 1.5%, the biggest upside in a day since March 18, to end at 74,227.
Both indices had tumbled about 3% each on Monday, spooked by US President Donald Trump’s refusal to budge on tariffs.
Elsewhere in Asia, Japan gained 6%, China advanced 1.6%, Hong Kong rose 1.5%, and South Korea gained 0.3%. Taiwan dropped 4%. The pan-Europe index, Stoxx 600, was up 2.7%.
“The pullback today was because the market was oversold, and a recovery in global markets resulted in some short covering,” said Rajesh Palviya, head of technical and derivatives research at Axis Securities, warning that the recovery did not mean the worst is over.
Agencies Nifty Over Key Support Level
The Reserve Bank of India monetary policy announcement on Wednesday could set the immediate tone for the markets. The central bank is expected to cut interest rates by 25 basis points in the wake of concerns over a slowing global economy, although tariff worries will also weigh on the monetary policy committee.
Foreign portfolio investors dumped shares worth ₹4,994 crore on Tuesday, taking their sales tally for April to ₹28,148 crore. Domestic institutions were buyers to the tune of ₹3,097 crore.
The Nifty’s Media index was the top gainer of the day, up 4.7%, followed by the PSU Bank, Consumer Durables, Realty and Oil and Gas indices, which gained 2.2-2.7% each.
“Till October, by when India should be able to negotiate a tariff deal, market volatility may continue,” said Sonam Udasi, senior fund manager at Tata Asset Management. “Though India will continue to mirror the gains or falls in the global markets, the intensity remains lower.”
In the broader market, the Nifty Midcap 150 gained 2.1% and the Nifty Small-cap 250 rose 2.2%. Of the total 4,083 stocks traded on the BSE, 3,074 gained and 898 declined at the close.
The Volatility Index or VIX, the fear gauge of the markets, cooled off, dropping by 10.3% to 20.44, tracking the relief rally. A day earlier, the index had jumped almost 66% – its highest single-day advance – after markets crashed in response to the global uncertainty over tariffs.
For now, investors are relieved that the Nifty has managed to close above a key support level of 21,700-21,900.
According to Palviya of Axis, “22,300 is the immediate support level for Nifty, and if the index sustains above this level, it can go up to 22,800-23,000 in the coming days. Banking and financials are the only sectors showing strength, where we may see continuation of up moves in coming days.”
