Sensex, Nifty Recover From Early Slide

(RTTNews) - Indian shares recouped early losses to finish little changed on Tuesday as investors boosted their bets on Federal Reserve interest-rate cuts.

As growth worries mount, traders are now pricing in 88 bps of easing from the Fed this year, compared to 75 bps on Monday, according to LSEG data.

There is much anxiety over U.S. tariff policy and a potential recession in the world's largest economy.

After trading closed on Monday, a White House official downplayed the weeks-long stock market sell-off, insisting that recent moves by business leaders suggest a brighter outlook for the U.S. economy.

In a separate statement, White House spokesman Kush Desai said "industry leaders" had responded to Trump's agenda, including tariffs, "with trillions in investment commitments".

Oil prices hovered near multi-year lows on demand concerns and the U.S. dollar and bond yields slipped on growth concerns, helping domestic markets rebound from intraday low levels.

The benchmark 30-share BSE Sensex hit an intraday low of 73,663.60 before cutting losses to end the session down 12.85 points at 74,102.32.

The broader NSE Nifty index ended up 37.60 points, or 0.17 percent, at 22,497.90, after having fallen to 22,314.70 earlier.

The BSE mid-cap index rose 0.7 percent while the small-cap index shed 0.7 percent. The market breadth was negative on the BSE, with 2,501 shares declining while 1,469 shares advanced and 121 shares ended unchanged.

IndusInd Bank shares plunged 27 percent as more analysts downgraded their ratings on the stock following reports of derivative portfolio mismatch.

Among other prominent decliners, Power Grid Corp, Mahindra & Mahindra, Bajaj FinServ and Infosys fell 1-2 percent.

Trent topped the gainers list to end more than 4 percent higher while ICICI Bank, BEL, Sun Pharma and BPCL climbed 2-3 percent.