After heavy selling spree, Sensex climbs 1,000+ points in sharp rebound

Markets opened strong on Tuesday, with the Sensex jumping more than 1,000 points, recovering from its worst single-day fall in 10 months. The previous day’s sharp decline was triggered by fears of a possible recession and rising inflation due to a trade war sparked by new tariffs imposed by US President Donald Trump.

Both the Sensex and Nifty rose over 1.5 per cent. The Nifty was trading above 22,500, while the Sensex crossed 74,200. All sectoral indices showed a strong recovery. Analysts said the panic selling seems to have eased, and there’s hope that Trump might soften his aggressive tariff policy.

The bounce-back comes after Monday's steep fall, one of the worst in five years. The BSE Sensex had crashed 2,226.79 points (2.95%) to close at 73,137.90. Earlier in the day, it had plunged as much as 3,939.68 points (5.22%) to touch a low of 71,425.01.

The NSE Nifty dropped 742.85 points (3.24%) to end at 22,161.60. During the day, it fell as much as 1,160.8 points (5.06%) to touch 21,743.65.

Such a steep fall was last seen on March 23, 2020, when markets crashed over 13% after a nationwide Covid-19 lockdown was announced.

The global sell-off was also intense, with markets reacting strongly to the US-China trade tensions. Hong Kong’s Hang Seng index fell more than 13%, Tokyo’s Nikkei 225 dropped nearly 8%, Shanghai’s SSE Composite lost over 7%, and South Korea’s Kospi was down more than 5%.

European markets also faced heavy selling, trading over 4% lower.

In the US, markets closed sharply down on Friday. The S&P 500 fell 5.97%, Nasdaq lost 5.82%, and the Dow declined 5.50%.