At the end of the trading session, the Nifty 50 of the National Stock Exchange (NSE) stood at 23,350.40, up about 159 points or 0.69 per cent. The Sensex at BSE was up 557.45 points or 0.73 per cent at 76,905.51.
Among Nifty-listed companies, 38 stocks advanced while 12 saw declines. IndusInd Bank, SBI Life, Bajaj Finserv, Tata Motors, and Larsen & Toubro emerged as the top gainers, while Infosys, HCL Tech, Wipro, BPCL, and Britannia were among the worst performers in early trade.
The panic in the Indian equity markets is expected to continue despite low volatility in the past few months of trading, said Nuvama in its recent report.
India is gaining a greater share in global output due to strong foundational factors such as robust population growth, a functioning democracy, macroeconomic stability, better infrastructure, a growing entrepreneurial class, and improved social outcomes.
Among Nifty companies, 18 stocks advanced, while 31 declined, and one remained unchanged. ONGC, BEL, Tata Steel, IndusInd Bank, and Power Grid emerged as the top gainers, while Sriram Finance, M&M, Bajaj Auto, Eicher Motors, and Adani Ports were the top losers in early trading.
The U.S. stock markets continued to decline on Tuesday after President Donald Trump announced additional tariffs on steel and aluminum imports from Canada.
The sell-off in the US stocks is not necessarily a signal that US economic risks have escalated significantly, but it has been because of the unwinding of extended positions in momentum and tech stocks, according to a report by UBS.
Indian stock markets declined sharply during the opening session on Tuesday following the strong sell-off in U.S. markets, reacting to the "Trump Uncertainty Discount" that is affecting global supply chains.
The rout on Wall Street began early, with all three major indexes opening in the red. US stocks witnessed a drop throughout the day, and despite a brief afternoon rally, they closed in the red.