Tue Feb 04 18:28:48 IST 2025: ## Indian Stock Market Stages Strong Rebound After Monday Dip, Fueled by Metal and Auto Sectors
**Mumbai, February 4, 2025** – India’s stock market experienced a significant turnaround on Tuesday, February 4th, recovering sharply from Monday’s losses driven by global trade tensions. The benchmark BSE Sensex surged 481.50 points (0.62%) to 77,668.24 at 9:20 am IST, while the NSE Nifty gained 148.00 points (0.63%) to reach 23,509.05.
This rally was primarily fueled by gains in the metal, auto, and PSU bank sectors. Mahindra & Mahindra led the Sensex gainers, rising 2.98%, followed by Infosys (2.28%) and Adani Ports (2.07%). The Nifty Metal Index saw the most significant increase, jumping 2.34%. However, six Sensex stocks remained in negative territory.
The positive market sentiment stands in stark contrast to Monday’s performance, which saw the Sensex close down 319.22 points (0.41%) and the Nifty fall 121.10 points (0.52%). Monday’s decline was attributed to President Donald Trump’s new tariffs on Canada, Mexico, and China, triggering fears of a trade war and sending the Indian rupee to an all-time low of 87.29 against the US dollar. Foreign investors also contributed to the downturn, selling ₹1,327.09 crore worth of Indian equities on February 1st. Further caution ahead of the RBI’s Monetary Policy Committee meeting (February 5-7) also weighed on investor sentiment.
Akshay Chinchalkar, Head of Research at Axis Securities, noted that while the Nifty ended the day in the red for the second day, the recovery from intraday lows indicated continued bullish sentiment in the short term. Despite the overall positive trend on Tuesday, sectors like Oil & Gas, Metals, and FMCG, which suffered on Monday, continued to show some weakness. Larsen & Toubro led the Sensex decliners on Monday with a 4.64% drop.
The market’s sharp recovery suggests a resilient response to global uncertainty, though the long-term impact of the trade war remains a significant concern for investors.
First Piper 