After three consecutive sessions of heavy losses, Indian stock markets opened on a stronger note on Tuesday, tracking gains in Asian equities and positive global signals. Sensex and Nifty surged over 1% at the open, offering relief to investors rattled by Monday’s sharp plunge. However, the gains pared slightly during mid-morning trades, indicating continued uncertainty driven by international trade tensions and cautious investor sentiment.
The BSE Sensex jumped 1.19% to open at 74,013.73, while the Nifty 50 climbed 1.28% to 22,446.75. Both indices had experienced their steepest single-day fall since June 4 in the previous session, tumbling nearly 3% as markets reacted to escalating US-China trade tensions. The rebound came after Asian indices such as Japan’s Nikkei 225 surged 5.22%, Hong Kong’s Hang Seng rose 1.33%, and Shanghai Composite gained nearly 1%.
Volatility Continues Despite Morning Gains
Despite the strong opening, the indices gave up part of their gains by 10:50 am. The Sensex was up 0.47% at 73,479.54, and the Nifty traded 0.57% higher at 22,288.75. Analysts noted that optimism was briefly fueled by reports of the US potentially delaying new tariffs on Chinese imports, but these claims were later denied, leading US equity markets to close mixed on Monday.
On the domestic front, the India VIX—a measure of expected near-term volatility—declined 13.97% in early trade to 19.61, after surging over 65% the previous day. Broader market indices also showed signs of recovery, with the Nifty Midcap 100 up 2.1% and the Nifty Smallcap 100 gaining 2.5%. Sectorally, Nifty Metal rose 2.3%, and Nifty IT advanced 1.09%.
Market Sentiment Mixed Amid Trade Tensions and Earnings Watch
Top gainers in the NSE included Titan (5.84%), Shriram Finance (4.72%), Bajaj Finserv (3.91%), and Bharat Electronics (3.88%). However, market experts warned that volatility could persist until global trade uncertainties subside. With the Reserve Bank of India’s monetary policy decision expected on April 9 and corporate earnings led by TCS on April 10, traders remain cautious.
Analysts believe long-term investors can selectively enter quality large-cap stocks, especially in financials and pharmaceuticals, where valuations remain attractive. Pharma stocks, in particular, are seen as promising due to stable pricing and lower exposure to potential tariffs.
