Daijiworld Media Network- Mumbai

Mumbai, Apr 8: In a dramatic turnaround after Monday's market meltdown, Indian equity benchmarks witnessed a strong rebound on Tuesday, with the BSE Sensex surging over 1,000 points in early trade, signalling renewed investor confidence amid easing global cues.

The recovery comes on the heels of Monday’s bloodbath that saw the Sensex nosedive by nearly 2.95%, wiping out over Rs 280 billion in market capitalisation in just three sessions. The NSE Nifty 50 too had plunged sharply, falling 3.24% to close at 22,161.10 – marking its worst single-day drop in nearly 10 months.

However, Tuesday brought some much-needed relief to investors. Riding on positive sentiment from Asian markets and hints of a possible easing in US trade tensions, Indian indices roared back. All 13 major sectoral indices on the NSE traded in the green, with the Nifty Smallcap and Midcap indices rising by 2.6% and 2.2%, respectively.

Blue-chip stocks led the rally, as foreign institutional investors turned net buyers after a streak of outflows. Market watchers attribute the rebound to value buying and a correction-driven opportunity after recent sharp declines.

Despite the positive momentum, analysts remain cautiously optimistic. “India’s macroeconomic fundamentals are still sound, and stock valuations remain attractive. However, global uncertainties—especially those surrounding US trade policies—will continue to cast a shadow,” said a senior market analyst from a leading brokerage.

As the trading day progresses, all eyes remain on global cues and institutional activity to determine if this rally has legs or if volatility will return to haunt Dalal Street.