MUMBAI, India, October 13 (ANI) — Indian stock markets staged a strong recovery Tuesday, with both benchmark indices closing sharply higher as a rally in information technology (IT) stocks, driven by optimism over corporate earnings, lifted overall market sentiment.
The Nifty 50 closed at 22,721.95, gaining 358.60 points, or 1.60%, while the BSE Sensex surged 1,109.10 points, or 1.54%, to close at 73,033.78.
The rally was led by IT stocks, with the Nifty IT index jumping more than 5% as investors responded positively to optimism surrounding HCL Technologies’ earnings.
Vikram Kasat, chief business officer for advisory and dealing at PL Capital, said Indian equities had staged a strong recovery, led by IT stocks.
“The nearly 4.7% 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 positive territory except the Nifty Pharma index, which declined 0.05%.
The Nifty Realty index rose 2.48%, followed by the Nifty IT index, which gained more than 5%. The Nifty FMCG index advanced 1.40%, the Nifty PSU Bank index gained 1.46%, the Nifty Auto index rose 1.23%, the Nifty Metal index climbed 1.17%, and the Nifty Media index gained 0.55%.
Kasat noted that an approximately 8% decline in the 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% could constrain policy flexibility and corporate profit margins.
“Going forward, sustained earnings growth and broader sectoral participation will be crucial to extending the rally; investors should favor fundamentally strong companies and avoid aggressive bets at elevated valuations,” he said.
Riyank Arora, associate vice president for high-net-worth individual (HNI) and derivatives at 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.”
Meanwhile, Brent crude prices remained elevated at $104.55 per barrel at the time of reporting. Gold was trading at 149,535 rupees per 10 grams for 24-karat purity, while silver was priced at 222,849 rupees per kilogram.
Rajeev Sharan, head of research at Brickwork Ratings, said the rupee extended its rebound for a second consecutive day Tuesday, trading in the mid-95 range after rising nearly 1% Monday, its biggest single-day gain in more than 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,” Sharan said.
In other Asian markets, Japan’s Nikkei 225 fell 1.93% to close at 67,721, while Taiwan’s weighted index declined 1.99% to 48,341. South Korea’s KOSPI dropped 5.78% to 6,035.
In contrast, Singapore’s Straits Times Index gained 0.28% to close at 5,430, while Hong Kong’s Hang Seng Index rose 0.20% to 24,319. (ANI)
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