Strong recovery in stock market after major drop

New Delhi 8 April (VNI )The Indian stock market bounced back strongly on Tuesday, offering much-needed relief to investors after witnessing the steepest fall in ten months on Monday. Sensex jumped 1,284.65 points or 1.75 percent in early trade to touch a high of 74,421.65, while the broader Nifty rallied 415.95 points or 1.87 percent to scale 22,550.70. The gains helped the indices recover a large part of Monday’s sharp losses, when they had logged their worst single-day fall in 10 months.  

Almost all of the 13 major sectoral indices were trading in the green, following a recovery in Asian peers and across the board buying. Leading the market recovery were heavyweight stocks like Titan and Tata Steel, both of which saw gains of around 5%. This strong performance from blue-chip companies helped lift overall market confidence and indicated broad-based buying across sectors.

Monday’s dramatic fall was triggered by concerns over U.S. tariffs following former U.S. President Donald Trump’s warning of tariff hikes. The news sparked panic across global markets, and India was no exception. The Nifty had plummeted by 3.2%, and the Sensex by 3%, wiping out nearly ₹14 lakh crore in investor wealth. While this decline was smaller compared to the MSCI Asia ex-Japan index’s 8.4% drop, it still sent shockwaves through domestic trading floors.

Tuesday, however, brought a wave of recovery not just in India but across Asian markets. The S&P 500 futures rose by 1.3%, Japan’s Topix jumped 6.6%, Australia’s S&P/ASX 200 increased by 0.9%, and the Euro Stoxx 50 futures in Europe also gained 2.5%. This global rebound played a key role in restoring confidence among Indian investors, helping the domestic market to recover sharply.

The recovery was further supported by widespread buying across all sectors. It was evident that investors had overcome their initial fears and were once again willing to place their trust in the market. The sharp gains in Titan and Tata Steel acted as key drivers for both Sensex and Nifty, lifting the indices significantly.