Markets recovered on Tuesday after a brutal selloff in the previous session, lifted by hopes that global trade tensions may ease. Most global markets bounced back after nearly $10 trillion was wiped out over the past three trading sessions. Bargain hunting and expectations of a rate cut by the Reserve Bank of India (RBI) also supported the rebound.
The Sensex rose 1.5 per cent to close at 74,227, while the Nifty 50 gained 1.7 per cent to end at 22,536. Barring Power Grid Corporation of India, all Sensex and Nifty stocks closed in the green.
During intraday trade, both indices climbed as much as 2.4 per cent. Tuesday’s session — the strongest for the Nifty in three months and for the Sensex in three weeks — followed a 3 per cent drop on Monday, driven by concerns that US tariffs and the broader trade conflict could tip the US into recession and drag down global growth.
The broader market also strengthened, with mid and smallcap indices rising around 2 per cent each. A day after its biggest-ever single-day jump, the India Vix fell 10 per cent to 20.44.
Market breadth improved sharply: 3,092 stocks advanced while 872 declined. The number of stocks hitting 52-week lows dropped to 54 from 775 the day before, while those reaching lower trading limits fell to 184 from 543 on Monday.