Sensex and Nifty Bounce Back Despite Early Plunge on Tariff New

Indian equity markets staged a compelling turnaround today after a sharp opening slide triggered by U.S. tariff announcements. The Sensex fell by over 500 points at market open, wiping out approximately ₹1.61 lakh crore in investor wealth. But as derivatives expiry approached, the indices rebounded, closing modestly in green. Nifty50 ended near 24,600 and Sensex around 80,620—demonstrating robust late‑session buying. The recovery was propelled by late inflows into Nifty derivatives and broker assessments that downplayed the tariff shock, emphasizing that listed companies possess limited exposure to the affected export categories.

Sector rotation played out visibly: IT and pharma names led gains, reversing early losses, while real‑world export names such as Adani Ports and HUL remained under selling pressure. Mid‑ and small‑cap indices also nudged higher, affirming breadth. Market commentary highlighted the expiry dynamics as a stabilizing force, and experts forecast that between now and August 27, diplomatic interventions could soften tariff impact. With global sentiment fragile, India’s internal market confidence coupled with RBI support helped firms maintain valuations, underscoring the buffer provided by domestic demand and monetary policy stability.