Indian stock markets rebounded sharply on Tuesday, with the BSE Sensex and NSE Nifty50 gaining over 1% in early trade. This recovery followed a significant drop on Monday, driven by fears of escalating trade wars after the U.S. President announced reciprocal tariffs. The Sensex rose 1.19% to open at 74,013.73, while the Nifty50 gained 1.28% to start at 22,446.75. The rebound was supported by positive global cues, with Asian markets like the Nikkei 225, Hang Seng, and Shanghai Composite also showing gains. Despite the initial positive movement, the U.S. markets ended mostly lower on Monday, reflecting ongoing concerns about economic slowdown and inflation. Market experts suggest that the heightened uncertainty and volatility will persist, with the trade war likely confined to the U.S. and China. India has started negotiations on a Bilateral Trade Agreement with the U.S., and there is an increased risk of a recession in the U.S. China is expected to be the worst-hit economy, potentially leading to depressed international metal prices as it tries to dump products like metals in other countries. The India VIX, an indicator of market volatility, declined 13.97% to 19.61 in the morning trades. All broader market indices were trading in green, with the Nifty Midcap 100 up 2.1% and Nifty Smallcap 100 gaining 2.5%. Sector indices like Nifty IT and Nifty Metal also saw gains, with Nifty IT up 1.09% and Nifty Metal rising 2.3%. Notable gainers in the morning trades included Titan, Shriram Finance, Bajaj Finserv, and Bharat Electronics.