On Tuesday, benchmark indices made a strong comeback after facing a bloodbath in the previous session. Both the Nifty 50 and Sensex were trading 1% higher at the time of writing.

What Happened: The rebound today is driven by a broad-based recovery in Asian markets. On Tuesday, Japan's Nikkei 225 index surged by 10.97% to reach an intraday high of 34,911.80, recovering from a 12.4% decline the previous day.

Other Asian markets also saw positive movement, with Hong Kong's Hang Seng index rising by 0.32% and the Taiwan Capitalization Weighted Stock Index climbing by 2.31%.

See Also: Nikkei Recovers 10% After Historic Low, Asian Peers and US Futures Follow Suit

Tech Mahindra, Adani Enterprises and Wipro were the top gainers in the Nifty 50 index. 48 out of the 50 stocks were trading in the black on Tuesday morning. The two laggards were HDFC Life and SBI Life. All 30 stocks in the Sensex were in the black.

Almost all broad market indices, including Nifty midcaps and small caps, rebounded by over 1%. The India VIX, a gauge of market volatility, fell by 14.10%, reversing a 60% increase from the previous day.

The markets would be keenly looking at the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which is scheduled to start today. The repo rate was last increased to 6.5% in February 2023 and has been unchanged ever since. The announcement from the meetings will be made on August 8.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.