Indian stocks recover from Monday's fallout, Sensex jumps over 1,000 points

Nifty closed at 22,535.85 points, up 374.25 points or 1.69 per cent.

"Investors may continue in wait-and-watch mode since it will take time for clarity to emerge," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On Tuesday, Indian stocks witnessed a bloodbath as the new week kicked off, triggered by the Trump reciprocal tariffs. These tariffs had set off a sell-off in equities globally, and India was no exception. Sensex fell over 2,200 points.

Trump's reciprocal tariff announcement last week has been sending tremors across asset classes globally, including here in India. Equity markets worldwide slumped, particularly after Trump's sweeping trade tariffs, which stoked fears of trade tension and an economic recession.

Going ahead, the market focus will gradually shift towards the RBI monetary policy and the upcoming corporate earnings season.

"RBI Monetary Policy may follow up with another rate cut (inflation has been tracking way below RBI's own forecasts), and possibly more regulatory easing," said Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services.

Indian stock indices closed the week that passed by on a sour note, weighed down by the Trump reciprocal tariffs and the uncertainties surrounding them. The Sensex slumped about 2,100 points during the week.

Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.