Indian equity markets managed a mild rebound on Tuesday after Monday’s steep losses. The Nifty 50 inched up 0.26% to 23,144.35, while the BSE Sensex gained 0.29%, closing at 76,545.10. This recovery came after both indices plunged 1.4% in the previous session, battered by a sharp rupee fall and disappointing earnings. The rupee, which hit a record low on Monday, found some stability, recovering 0.1% against the US dollar. However, the broader market sentiment remains fragile, with foreign investors pulling $2.75 billion from Indian equities this month alone. IT stocks, however, were a drag, led by HCL Technologies, which nosedived 9%—its sharpest fall in over nine years. The company’s underwhelming December-quarter performance, particularly in its software division, sparked investor concerns. On a positive note, India’s retail inflation easing to a four-month low has fueled hopes of a potential rate cut by the Reserve Bank of India next month. While this development provided some relief, uncertainties around weak corporate earnings, global economic headwinds, and persistent foreign outflows continue to weigh on market confidence. Tuesday’s recovery might offer some short-term relief, but sustained growth hinges on clearer cues from corporate results and broader macroeconomic indicators. For now, the markets appear to be taking a cautious pause rather than signaling a full-fledged turnaround.