Bulls Take Charge: Sensex Rises Over 1000 Points, Nifty Above 23,600

The Indian stock market made a strong comeback on Tuesday after witnessing significant losses in the previous session. The Sensex opened at 77,687.60, recovering from its Monday close of 77,186.74, and surged over 1020 points to 78,207.26 by 1:25 PM. Similarly, the Nifty 50 opened at 23,509.90, climbing from its last close of 23,361.05, and gained 293 points to 23,654.15 in early trade.

This recovery came on the back of improved global sentiment, a temporary pause on US tariffs on Mexico and Canada, and expectations of a rate cut from the Reserve Bank of India (RBI).

Trump's Tariff Pause Sparks Global Rally
Investor sentiment improved after US President Donald Trump temporarily paused his proposed tariffs on Mexico and Canada for 30 days. The move alleviated concerns over escalating trade tensions that had contributed to Monday’s market crash.

As mentioned in the report by PTI, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said,"The Indian rupee opened near 86.98 on Tuesday after relief from Trump's tariffs overnight on reaching an agreement with Canada and Mexico."

Following this development, major Asian indices including Japan's Nikkei, Korea’s Kospi, and Hong Kong’s Hang Seng all gained over 1%, setting a positive tone for global markets.

RBI Rate Cut Hopes Fuel Market Optimism
Investors are now focusing on the upcoming RBI Monetary Policy Committee (MPC) meeting scheduled from February 5-7, where expectations are rising for a 25 basis points rate cut to support economic growth.

Market analysts believe that a rate cut would provide liquidity support and further boost investor confidence, pushing markets higher in the coming weeks.

Rupee Rebounds After Hitting Record Low
On Monday, the Indian rupee plunged to an all-time low of 87.28 against the US dollar following Trump’s tariff announcement. However, the currency rebounded by 13 paise to 86.98 in early trade on Tuesday as trade tensions eased.

Can the Rally Sustain?
With global sentiment improving, RBI rate cut expectations, and trade tensions easing, the Indian stock market is showing signs of resilience. However, investors remain cautious about further developments in US trade policy and upcoming economic data.

For now, all eyes are on the RBI meeting and further cues from global markets to determine whether this rally has more room to grow.