Indian Markets Rebound Amid Economic Concerns

The Indian stock markets experienced significant volatility as Sensex and Nifty indices rebounded on Tuesday after a sharp decline the previous day due to strong US job data and rising crude oil prices. Sensex gained over 400 points, while Nifty rose by 136 points, driven by banking and auto stocks, despite continued foreign fund outflows and a weakening rupee, which hit an all-time low against the dollar. Monday's market saw a significant selloff due to concerns over fewer anticipated US interest rate cuts and rising inflation, leading to a market cap drop below $5 trillion for the first time in over seven months. The rupee appreciated slightly against the dollar on Tuesday, recovering from its lowest-ever level, supported by easing crude oil prices and positive inflation data. The broader market sentiment remains cautious, influenced by global economic indicators and domestic challenges, such as GDP downgrades and corporate earnings slowdowns. Additionally, the US markets showed mixed performance with tech shares dragging indices down amid concerns of reduced rate cuts by the Federal Reserve.