Tue Jan 28 04:20:00 UTC 2025: ## Indian Stock Markets Rebound After Two-Day Slump
**Mumbai, India** – Indian benchmark indices, the Sensex and Nifty, rebounded on Tuesday, ending a two-day losing streak. Investors viewed the recent sell-off as overdone, fueled by optimism stemming from a mixed performance on Wall Street and a decline in the dollar index. This eased concerns about potential foreign capital outflows from emerging markets, including India.
While concerns remain regarding subdued earnings, the possibility of a US-China trade war, and a slowing Chinese economy, the market showed signs of recovery. Trading opened with the Sensex up 0.49% at 75,735.08 and the Nifty slightly down 0.41% at 22,923.60. Banking stocks led the gains, with Axis Bank showing the strongest performance.
The rebound follows recent market corrections, with valuations now aligning with the past 10-year average, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He suggests this presents a buying opportunity for fundamentally strong stocks. The RBI’s injection of ₹1.5 trillion into the banking system also boosted market sentiment, raising hopes for a potential interest rate cut.
Vijayakumar further noted that the recent impact of DeepSeek on US markets serves as a reality check for overvalued stocks, potentially leading to a more cautious global market outlook in the medium term. Investors are now looking ahead to the upcoming two-day US Federal Open Market Committee (FOMC) meeting and the Union Budget 2025.
First Piper 