Indian indices recover after worst crash in 10 months; global markets stabilize as Trump-Japan trade talks hint at tariff softening
Mumbai, April 8, 2025 — A day after witnessing its worst single-day decline in nearly a year, the Indian stock market made a strong comeback on Tuesday morning. The BSE Sensex surged over 1,000 points, climbing past 74,200, while the Nifty 50 jumped more than 1.5%, trading above 22,500.
Also Read: Jamie Dimon Warns Trump’s Tariffs Could Trigger Recession, Erode U.S. Global Standing
All major sectoral indices bounced back sharply, signaling a broad-based recovery. Market experts attributed the rebound to settled panic selling and optimism around possible de-escalation of the US-led trade war that had triggered Monday’s meltdown.
🌏 Global Relief Rally
Japan’s Nikkei index led the Asian recovery, rising 6%, buoyed by reports of a phone call between US President Donald Trump and Japanese Prime Minister Shigeru Ishiba, where both sides agreed to initiate trade talks.
Also Read: Goldman Sachs Raises US Recession Risk to 45% Amid Trump Tariffs, Lowers Growth Forecast
Other Asian markets followed suit:
- South Korea’s Kospi rose 1.7%
- Hong Kong’s Hang Seng Index climbed 2.25%
- China’s blue-chip CSI 300 advanced 0.7%
However, some Southeast Asian markets like Indonesia’s Jakarta Composite and Vietnam’s benchmark index continued to struggle, falling over 9% and 5% respectively. Thailand’s SET slipped more than 4%, reaching its lowest point since March 2020.
European and US futures also rebounded. The Pan-European STOXX 50 futures were up 2.2%, while S&P 500 futures rose 0.9%, hinting at a stronger Wall Street open.
📉 Monday’s Mayhem Recap
On Monday, Indian equities were roiled by global fears of a recession following fresh tariffs by the US.
- The Sensex plummeted 2,226 points (2.95%), ending at 73,137.90
- The Nifty fell 742.85 points (3.24%), closing at 22,161.60
- Intraday, both indices saw declines exceeding 5%, reminiscent of Covid-era selloffs from March 2020
Markets across the world witnessed similar panic selling as Trump’s new round of tariffs sparked a fresh wave of retaliatory moves from China, escalating concerns about global inflation and trade disruption.
📊 Analyst View
Analysts now believe stabilization has begun, and bargain buying could further support markets if geopolitical tensions cool down. There’s also growing hope that the Trump administration might revise its aggressive tariff strategy under pressure from allies and economic advisors.
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