India's benchmark Nifty set to rebound after $280 billion wipeout in three sessions

India's benchmark Nifty 50 is set to open higher on Tuesday, rebounding after it logged its steepest single-day drop in 10 months as a U.S. tariff-fuelled selloff triggered anxiety among investors.

The GIFT Nifty futures (GIFc1) were trading at 22,683 as of 8:03 a.m. IST, indicating that Nifty NIFTY will open 2.3% higher than its Monday close of 22,161.6.

The Nifty and the 30-stock BSE Sensex SENSEX fell 3.2% and 3%, respectively, on Monday, compared to the MSCI Asia ex-Japan index's (.MIAPJ0000PUS) 8.4% fall.

The total market value of all NSE-listed companies has fallen by $280 billion in three sessions since the announcement of U.S. tariffs.

Foreign institutional investors sold Indian shares worth $1.05 billion on Monday, the highest daily outflow since February 28. Domestic institutional investors bought $1.41 billion of shares.

Other Asian markets, which tumbled on Monday, also opened higher on the day. The MSCI Asia ex-Japan index (.MIAPJ0000PUS) added 0.2%, Japan's Nikkei 225 NI225 traded 5.7% higher, and the Hang Seng index (.HIS) rose 2.5%.

Most Wall Street equities closed lower overnight, with mounting concerns over an economic slowdown and rising inflation due to Trump's tariff plans weighing on sentiment.

While Indian equities could likely rebound, "the current investor sentiment is characterised by uncertainty and fear, and it will persist till the time a new normal for global trade is established," said Shiv Chanani, fund manager of equity at Baroda BNP Paribas Mutual Fund.

The Nifty volatility index INDIAVIX - or the fear index - jumped 66% to 22.79, the biggest daily rise in 10 years.

"The dramatic rise in the volatility index highlights a surge in market anxiety and signals uncertainty among investors ahead of the Reserve Bank of India's monetary policy meeting," said Dhupesh Dhameja, derivatives research analyst at SAMCO Securities.

The RBI is widely expected to cut 25 basis points on Wednesday amid expectations that its monetary policy could likely turn more supportive as tariffs threaten to hurt economies globally.

STOCKS TO WATCH

** Jeweller and watchmaker Titan TITAN says fourth-quarter revenue grew 25% on surging gold prices

** Indian government signs 23.85-billion-rupee ($277.80 million) contract with Bharat Electronics BEL for electronic warfare suites, aircraft modification kits

** Automaker Mahindra & Mahindra M&M reports total production of 88,701 units in March, up 23.5% year-on-year

** Sobha SOBHA says its sales value logged a sequential growth of 32.2% in the March quarter

($1 = 85.8520 Indian rupees)