Tue Feb 04 17:37:13 IST 2025: ## Indian Stock Market Rebounds Sharply After Monday’s Dip

**Mumbai, India** – Indian stock markets staged a dramatic recovery on Tuesday, surging after a significant decline the previous day. The Sensex soared over 1,100 points, reaching a high of 78,340.03, while the Nifty gained 300 points to hit 23,659.40. This represents a rebound of more than 1% in the afternoon session.

Monday saw the Indian rupee plummet to an all-time low of 87.28 against the US dollar, fueled by tariff concerns. However, Tuesday’s rally was attributed to several key factors, according to market analysts.

Positive global cues, including a temporary US freeze on tariffs against Mexico and Canada, boosted investor confidence. Experts suggest this could signal a similar approach towards China, easing trade war anxieties. The weakening US dollar also contributed to the positive sentiment.

The rupee’s partial recovery, gaining 13 paise to 86.98 against the dollar, further alleviated concerns among foreign investors. A strong services PMI index, reaching a six-month high of 57, also indicated a strengthening domestic economy.

Market optimism is further fueled by anticipation of a 25-basis-point rate cut by the Reserve Bank of India (RBI) in its upcoming monetary policy. Lower interest rates are expected to stimulate economic growth and reduce borrowing costs for businesses.

Most sectors traded in positive territory, with banking, financials, IT, and auto stocks leading the gains. The FMCG sector saw some profit-booking after recent increases. NBFCs (Non-Banking Financial Companies) also showed strong performance.

Analysts remain bullish on the auto sector and anticipate continued strength in the NBFC sector. While a short-term bottom may be in place, further confirmation is needed, they cautioned. The overall sentiment, however, points to a strong recovery in the Indian stock market.

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