Markets Rebound After Initial Trump Tariff Shock

Indian equities staged a dramatic recovery on Thursday, shrugging off early losses triggered by President Trump's announcement of new 25% tariffs on Indian goods. The Sensex clawed back from a 750-point deficit to close 0.1% higher at 80,623.26, while the Nifty 50 gained 0.09% to settle at 24,596.15.

Market participants attributed the reversal to emerging reports of potential US-Russia-Ukraine peace talks, which tempered trade war fears. "The afternoon rally reflects expectations of de-escalation," said Geojit's Vinod Nair, noting how diplomatic developments overshadowed the tariff news.

The tariffs, which target India's Russian energy imports, WOULD raise total duties on Indian exports to 50%. Yet traders focused instead on the indices' resilience - the Nifty rebounded over 250 points from its session low of 24,344.15.