Mumbai: The Indian stock market experienced a significant rebound on Tuesday, ending a three-day decline as investors prepared for the Reserve Bank of India's (RBI) monetary policy announcement scheduled for April 9.

Both the Sensex and Nifty indices saw impressive gains, each increasing by approximately 1.5% by the day's close, as market participants dismissed concerns regarding potential US tariff threats.

The Sensex surged by 1,089 points, or 1.49%, finishing at 74,227.08, while the Nifty rose by 374 points, or 1.69%, to close at 22,535.85.

This recovery followed a period of sharp declines attributed to fears surrounding US President Donald Trump’s proposed tariffs and escalating trade tensions with China.

The broader market also joined the upswing, with the BSE Midcap index climbing 1.87% and the Smallcap index advancing by 2.18%, indicating strong investor enthusiasm.

Sector-wise, the most significant gains were observed in Nifty Financial Services, FMCG, IT, PSU Bank, Auto, and Realty, all of which recorded increases of up to 2%.

Among the top performers on the 30-stock Sensex index were Titan, which rose by 3.25%, followed closely by Bajaj Finance at 3.21%, Larsen & Toubro at 3.07%, State Bank of India at 3%, and Axis Bank at 2.91%.

Power Grid was the only stock to close in the negative territory. This positive trend was mirrored in global markets.

Japan’s Nikkei 225 saw an impressive 6% increase, while the Shanghai Composite Index rose by 1.58%, and Hong Kong’s Hang Seng Index gained 1.51%.

Investors are now eagerly anticipating the results of the Reserve Bank of India’s Monetary Policy Committee (RBI MPC) meeting regarding potential rate cuts and other decisions.

In addition to the policy review, forthcoming corporate earnings for the fourth quarter (Q4) and other crucial macroeconomic indicators will influence investor sentiment throughout the week.

Experts noted, “Market sentiment remains positive as investors are optimistic about a stable policy from the central bank and robust domestic fundamentals.”

Jaykrishna Gandhi from Emkay Global Financial Services stated, “We expect a 25bps rate cut in line with consensus and a potential shift in stance to ‘accommodative’ to signal a bias towards easing.”