Nifty, Sensex Witness Strong Bounceback After Monday Crash: 5 Reasons Why Stock Market Is Up Today

Stock Market Today: The Indian Stock Market bounced back sharply on Tuesday after a massive sell-off on Monday triggered by global tariff tensions.

At the opening bell, the Sensex surged by 1,193.10 points (1.63%) to 74,331.00, and the Nifty 50 rose 385.50 points (1.74%) to 22,547.10. Here are five key reasons why the market turned green today:

Wall Street Reversal Offers Relief

US markets had a wild ride on Monday. Despite President Donald Trump’s tariff threats causing major early losses, Wall Street saw a dramatic turnaround by the end of the day. The Dow Jones dropped 349 points but had swung nearly 1,700 points earlier. The S&P 500, after falling 4.7%, jumped as much as 3.4% later. This rebound gave investors a sense of stability and helped boost global sentiment.

Asian Markets Stabilize

Markets across the Asia-Pacific rebounded after Monday’s panic. Japan’s Nikkei surged nearly 6%, South Korea’s Kospi climbed close to 2%, and Australia’s ASX 200 gained 1.1%. While not all losses were recovered, the positive trend in the region helped lift investor mood in India.

Broad-Based Sector Gains

All sectoral indices on the NSE and BSE opened in the green. Major gainers included Tata Steel, Hindalco, Titan, and Shriram Finance. Real estate, metal, and IT sectors saw the strongest buying interest, with indices jumping as much as 3%. Even mid-cap and small-cap stocks saw strong gains, rising 2% each.

Oversold Bounce

Monday’s steep fall made markets technically oversold, prompting bargain-hunting by investors and traders. Many viewed the dip as a buying opportunity, especially in quality stocks that were beaten down.

Also Read: Day After Black Monday, Indian Markets Bounce Back, Nifty, Sensex Open Higher

India Better Positioned

Despite global uncertainty, India is seen to be relatively better positioned. Investors believe India’s fundamentals remain strong compared to some of its Asian peers, adding to the recovery momentum.

"While India itself has been subjected to a 26% reciprocal tariff, the reactions over the coming weeks are likely to be influenced by global trade imbalances, as few competing Asian peers face higher levels of tariffs – such as China: 54%, Vietnam: 46%, Sri Lanka: 44%, Bangladesh: 37%, Thailand: 36%, Taiwan: 32%, et al. Further, India may negotiate a bilateral trade agreement (BTA) with the US, which could lead to milder tariff incidence," Motilal Oswal's report added.  

Caution Still Warranted

While today's gains offer some breathing space, experts caution that it may be too early to call a trend reversal. With global markets still reacting to unpredictable tariff policies, volatility may continue in the near term.

Market expert Jatin Gedia – a Technical Research Analyst at Mirae Asset Sharekhan, remains cautious about the short-term outlook. "So, even if there is a pullback say for the next couple of trading sessions, it won't sustain because there are huge numbers of long positions that are stuck at higher levels," he said.

Monday Stock Market Meltdown

On Monday, the Indian stock market witnessed its biggest single-day crash in 10 months, as fears of a global economic slowdown triggered by U.S. President Donald Trump’s aggressive tariff policies rattled investors worldwide. The Sensex tumbled 2,226.79 points, or 2.95%, closing at 73,137.90. The Nifty 50 also fell sharply by 742.85 points, or 3.24%, ending the day at 22,161.60.

The heavy sell-off on Dalal Street led to a massive Rs 14 lakh crore wipeout in investor wealth. Worries over a global trade war and a potential recession spooked the markets, causing a broad-based decline across sectors.