Indian equity benchmark -- Nifty -- rebounded from previous session’s sharp sell-off and closed higher on Tuesday amid report that US President Donald Trump reiterated Washington's new tariff policy but signalled his willingness to engage in dialogue with countries seeking more favorable trade policy. Index made gap-up opening on account of valued buying by fund houses and retail investors at lower levels. Meanwhile, investors were awaiting RBI monetary policy committee meeting's decision scheduled for tomorrow. The RBI is expected to reduce key interest rates by as much as 25 basis points this week. Investors took some encouragement as Subrahmanyam Jaishankar, external affairs minister, said he spoke to United States Secretary of State Marco Rubio on the early conclusion of the Bilateral Trade Agreement (BTA).
Index remained in green throughout the day, as traders took note of report that commerce ministry is stepping up efforts to help exporters explore new markets to push outbound shipments while also setting up a working group to monitor possible surge in imports from countries like China to tackle the impact of sweeping tariffs announced by the US.
