After facing steep losses in the previous sessions, India’s benchmark stock indices—Sensex and Nifty—bounced back on Tuesday, rising over 1% in early trading. This rebound came on the heels of encouraging trends across Asian markets, which helped restore investor confidence.

The 30-share BSE Sensex surged 1.19% to 74,013.73, recovering from Monday’s close of 73,137.9. Similarly, the Nifty 50 opened at 22,446.75, up 1.28% from its prior close of 22,161.6. Asian indices also showed strength, with Japan’s Nikkei 225 up by a massive 5.22%, Hong Kong’s Hang Seng up 1.33%, and the Shanghai Composite rising nearly 1%.

This recovery followed Monday’s dramatic plunge—when Sensex and Nifty crashed nearly 3%, their worst single-day fall since June 4, 2024. The sharp dip was driven by investor panic over rising trade tensions, triggered by U.S. President Donald Trump's announcement of reciprocal tariffs. Trump warned of an additional 50% duty on Chinese imports if China didn’t roll back its 34% retaliatory tariffs on U.S. goods.

While a brief recovery occurred after reports hinted at a potential 90-day delay in U.S. tariff enforcement, those reports were later debunked, leading to a mixed reaction in U.S. markets. The tech-heavy Nasdaq ended slightly higher, while others closed in the red.

Meanwhile, the India VIX—an index reflecting near-term market volatility expectations—dropped significantly by 13.97%, settling at 19.61 in morning trade, signaling reduced fear among traders despite ongoing geopolitical and economic tensions.