Markets Recover From US Tariff Shocks, Investors Receive Rs 10.9 Lakh Cr In a Single Day

The Indian stock markets made a comeback on Tuesday as the single-day rally added a huge amount of money to the investors' wealth -- Rs 10.9 lakh crore, erasing all losses that followed the US tariffs and the consequent shocks caused by it on April 2, 2025.

The Sensex jumped over 1,570 points in a powerful rally, while the Nifty jumped beyond 22,300, making it one of the sharpest gains in recent months.

This broad-based recovery which was driven by strong investor sentiments, boosted by global cues and domestic optimism.

What Triggered The Rally?

The biggest trigger for the rally was a new update on the US trade policy. A 90-day delay or pause was earlier announced by Washington for the implementation of tariffs for most countries, excluding China.

Investors nerves were eased due to this move and this re-ignited hopes for India's position in global supply chains.

How Did Stocks Perform?

leading the charge were financial stocks, rising over 2% due to their heavy weightage in the indices.

Midcap and smallcap indices also recovered strong, each rising by nearly 3% after underperforming recently.

Supported by a weaker US dollar and stable bond yeilds, the Asia markets were also firm, which further gave Indian markets an additional boost as they reopened after an extended weekend.

Other than global cues, India's strong macroeconomic fundamentals continue to attract investor interest.

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