Mumbai— Indian stock markets staged a strong relief rally on Tuesday, snapping a three-day losing streak ahead of the Reserve Bank of India’s (RBI) key monetary policy announcement scheduled for April 9.
Both the Sensex and Nifty surged, each gaining around 1.5% by the close, as investors shrugged off concerns over potential U.S. tariff actions.
The Sensex soared 1,089 points, or 1.49%, to close at 74,227.08, while the Nifty jumped 374 points, or 1.69%, ending the day at 22,535.85.
The rebound followed steep losses in prior sessions, driven by fears over proposed reciprocal tariffs from the U.S. starting Wednesday (U.S. time) and escalating trade tensions with China.
Broader markets also rallied, with the BSE Midcap index rising 1.87% and the Smallcap index climbing 2.18%, indicating strong investor participation across segments.
Sectorally, the rally was led by Financial Services, FMCG, IT, PSU Banks, Auto, and Realty, all of which posted gains of up to 2%.
Among the top performers on the 30-share Sensex were Titan, which rose 3.25%, followed by Bajaj Finance (3.21%), Larsen & Toubro (3.07%), State Bank of India (3%), and Axis Bank (2.91%). Power Grid was the only stock in the index to close in the red.
The upbeat sentiment was echoed in global markets. Japan’s Nikkei 225 posted a remarkable 6% gain, while China’s Shanghai Composite Index rose 1.58%, and Hong Kong’s Hang Seng Index advanced 1.51%.
Investor attention now turns to the outcome of the RBI’s Monetary Policy Committee (MPC) meeting, where markets are anticipating potential policy direction, including a rate cut.
In addition to the policy review, upcoming fourth-quarter corporate earnings and key macroeconomic indicators are expected to shape market sentiment in the coming days.
“Market sentiment remains positive, with investors optimistic about a steady policy stance from the central bank and India’s strong domestic fundamentals,” analysts said.
“India is gearing up for the RBI MPC meeting tomorrow, and we expect a 25 basis point rate cut, in line with consensus,” said Jaykrishna Gandhi of Emkay Global Financial Services.
He added, “We also foresee a possible shift in policy stance to ‘accommodative’ to signal a more dovish outlook.” (Source: IANS)
