Stock market today: BSE Sensex rallies over 1,000 points as markets rebound after crash; Nifty50 ends above 22,500 - top 5 reasons for rally

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Tuesday a day after the terrible stock market crash. While BSE Sensex went above 74,800, Nifty50 was above 22,650 intraday.BSE Sensex ended the day at 74,227.08, up 1,089 points or 1.49%. Nifty50 closed at 22,535.85, up 374 points or 1.69%.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services says, “The heightened uncertainty and volatility that has gripped markets worldwide will linger for some more time. There are some significant takeaways from the ongoing chaos. One, the trade war is like to be confined to US and China. Others including EU and Japan have opted for negotiations. India has already started negotiations on a BTA with US.Two, the risk of a recession in the US has increased. Three, China is likely to be the worst-hit economy. Trump’s threat of another 50% tariff on China will, if carried out, almost freeze Chinese exports to US. Four, China will try to dump its products like metals in other countries, and this will keep international metal prices depressed.
"Investors may continue in wait and watch mode since it will take time for clarity to emerge. However, since India’s macros are stable and we can grow at around 6% in FY26 and the valuations are fair particularly in largecaps, long-term investors can start nibbling at high quality largecaps like the leading financials. Since Trump is unlikely to impose tariffs on pharmaceuticals at this stage, pharma stocks, which are attractively priced now, appear to be good buys," he adds.
Consumer Durables index on Nifty saw a 3% increase, whilst Metal, Realty, and Financial Services indices gained more than 2%. The broader market indicators, Nifty Midcap 100 and Smallcap 100, rose by 2%. Additionally, India's volatility measure, India VIX, decreased by 10.2% to 20.47.

1) Global market recovery
Indian stock markets advanced alongside Asian counterparts as optimism grew regarding potential moderation in U.S. tariff policies.
Japan's Nikkei recorded a substantial 5.6% increase after Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer received directives to engage in discussions with Tokyo.
Although U.S. President Donald Trump maintained his stance on implementing additional 50% tariffs if China remained non-compliant, Beijing dismissed these "blackmail nature" threats. Nevertheless, Hong Kong's Hang Seng increased by 1.7%, whilst China's blue-chip index moved up by 0.6%, providing stability to international markets.
2) RBI Policy Outlook
Market sentiment reflects anticipation of the RBI's monetary policy announcement on April 9. Analysts project a 25 basis points reduction in the repo rate, whilst expecting the central bank to adopt a more accommodative position, considering how global trade issues affect economic growth.
3) Investment Opportunity
The current market upswing reflects investors taking advantage of recent price reductions, as the Nifty index has declined by over 14.8% from its highest point. Similarly, mid-cap and small-cap indices have experienced corrections of approximately 19% and 22%, respectively.
4) Oil Market Developments
Oil prices descended below $65 on Monday, reaching the lowest point since August 2021, driven by worries that American tariffs could reduce demand and trigger a worldwide economic downturn.
Brent crude traded at $65.07 per barrel on Tuesday, whilst American West Texas Intermediate (WTI) stood at $61.57 around 10:16 am IST.
5) US Bond Yields
The American 10-year Treasury yield decreased to 4.14% from approximately 4.5% in mid-February, alongside the 2-year yield's reduction to 3.715% from 4.28%. Concurrently, the US Dollar Index registered 102.92, fostering optimistic sentiment in emerging markets, including India.
The combination of a softer dollar and reduced American bond yields enhances the appeal of Indian equities to international investors, potentially attracting increased capital flows to the market.