Indian stock market bounces back with Sensex up 1.5% and Nifty up 1.7% following global cues and short covering.

After experiencing significant losses on Monday, the Indian stock market made a strong comeback driven by positive global cues and short covering. The Sensex witnessed a surge of 1.5%, while the Nifty rose by 1.7%, resulting in substantial gains for investors. Despite this turnaround, analysts are urging caution due to ongoing trade negotiations, Foreign Portfolio Investor (FPI) selling, and the upcoming Reserve Bank of India (RBI) interest rate decision, which is anticipated to impact future trading activities. The market sentiment has been lifted by the renewed optimism, but uncertainties still loom large, emphasizing the need for careful monitoring of developments to navigate potential risks effectively.

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