Indian stock markets surge on IT rally; Sensex, Nifty see big gains

Indian stock markets rallied on Tuesday, with Sensex and Nifty posting significant gains. The surge was led by IT stocks amid optimism about corporate earnings. Most sectoral indices ended in the green, lifting overall market sentiment.

Sensex, Nifty Surge on IT-Led Rally

Indian stock markets staged a strong recovery on Tuesday, with both benchmark indices closing with significant gains as a rally in information technology (IT) stocks, driven by optimism around corporate earnings, lifted overall market sentiment.

The Nifty 50 index closed at 22,721.95, gaining 358.60 points or 1.60 per cent, while the BSE Sensex surged 1,109.10 points or 1.54 per cent to close at 73,033.78.

Sectoral Gains and Expert Take

The rally was led by IT stocks, with the Nifty IT index jumping more than 5 per cent as investors responded positively to optimism around HCL Technologies' earnings. Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said Indian equities witnessed a strong recovery, with gains led by IT stocks. "The nearly 4.7 per cent surge in the Nifty IT index suggests that investors are selectively positioning themselves around earnings visibility rather than buying across the market," Kasat said.

On the National Stock Exchange (NSE), all sectoral indices closed in the green except Nifty Pharma, which declined 0.05 per cent. The Nifty Realty index jumped 2.48 per cent, followed by Nifty IT, which gained more than 5 per cent. Nifty FMCG rose 1.40 per cent, Nifty PSU Bank gained 1.46 per cent, Nifty Auto advanced 1.23 per cent, Nifty Metal climbed 1.17 per cent, and Nifty Media gained 0.55 per cent.

Market Risks and Technical Outlook

Kasat noted that the decline of around 8 per cent in India VIX indicated easing near-term uncertainty, although weakness in small-cap stocks suggested that investor risk appetite remained uneven. He also cautioned that elevated crude oil prices and September retail inflation of 5.54 per cent could constrain policy flexibility and corporate margins. "Going forward, sustained earnings growth and broader sectoral participation will be crucial to extending the rally; investors should favour fundamentally strong companies and avoid aggressive bets at elevated valuations," he said.

Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said, “The index reclaimed the 22,700 mark and continues to trade above its key support levels, reflecting sustained bullish momentum. Immediate support is placed around 22,650–22,600, followed by a stronger support zone near 22,450. On the upside, resistance is seen around 22,800–22,900. A decisive move above this zone could open the door for further upside.”

Commodity and Currency Watch

Meanwhile, Brent crude prices remained elevated at USD 104.55 per barrel at the time of filing this report. Gold was trading at Rs 1,49,535 per 10 grams for 24-karat purity, while silver was trading at Rs 2,22,849 per kg.

Rajeev Sharan, Head of Research, Brickwork Ratings said, "The rupee extended its rebound for a second day on Tuesday, trading in the mid-95s, after Monday’s near-1 per cent jump, its biggest single-day gain in over six months. The driver is not fresh inflows but the RBI rerouting dollars going out. Its new window now supplies state oil companies their full daily needs, about USD 300 million, directly, taking the market’s biggest and least price-sensitive buyer off the spot screen. It has also sharply cut currency derivative limits to squeeze speculators."

How Asian Markets Performed

In other Asian markets, Japan's Nikkei 225 declined 1.93 per cent to close at 67,721, while Taiwan's weighted index fell 1.99 per cent to 48,341. South Korea's KOSPI index dropped 5.78 per cent to 6,035. In contrast, Singapore's Straits Times index gained 0.28 per cent to 5,430, while Hong Kong's Hang Seng index rose 0.20 per cent to 24,319. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)