Stocks surge 2% in relief rally, but market may remain choppy

After taking a 5% hit post the US tariff shocker, Indian equity markets finally caught a breather on Tuesday, bouncing back nearly 2%, with a rebound in Asian markets lending some support to investor sentiment at home.

- Dipti Sharma

Still, market experts said investors would do well to take this single-day bounce with a pinch of salt, as tariff-driven jitters continue to keep volatility on a short fuse.

Markets may remain choppy until India has more clarity on the US tariff situation, experts added. Adding to the uncertainty, the Reserve Bank of India's upcoming monetary policy committee outcome could inject fresh swings into the market, especially with the weekly derivatives expiry lurking close.

The central bank is slated to announce its policy decision on Wednesday, with expectations tilted towards a 25 basis point rate cut, which was one of the key drivers lifting the market. That said, some experts said a deeper 50 basis point cut wouldn't come as a surprise given the current macroeconomic situation.

On Tuesday, the Nifty 50 closed 1.7% higher at 22,535.85 points, while the Sensex climbed 1.5% to settle at 74,227.08. The broader market joined the party, with the Nifty Midcap 100 and Smallcap 250 rallying 2.1% and 2.2%, respectively.