Sensex surges 1,109 points, Nifty closes above 22,700 as IT stocks lead market recovery

Indian equity markets staged a strong recovery on Tuesday, with benchmark indices closing sharply higher as a rally in information technology (IT) stocks, supported by optimism over corporate earnings, boosted investor sentiment.

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

IT stocks led the rally, with the Nifty IT index climbing more than 5 per cent amid positive sentiment surrounding HCL Technologies’ earnings.

Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, said the recovery reflected selective buying in sectors offering greater earnings visibility.

“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 ended higher except Nifty Pharma, which slipped 0.05 per cent.

The Nifty Realty index advanced 2.48 per cent, while Nifty FMCG gained 1.40 per cent, Nifty PSU Bank rose 1.46 per cent, Nifty Auto climbed 1.23 per cent, Nifty Metal added 1.17 per cent and Nifty Media gained 0.55 per cent.

Kasat said an approximately 8 per cent decline in India VIX, a measure of market volatility, indicated easing near-term uncertainty. However, weakness in small-cap stocks suggested that investor risk appetite remained uneven.

He cautioned that elevated crude oil prices and September retail inflation of 5.54 per cent could limit monetary policy flexibility and put pressure on 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 added.

Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the Nifty’s recovery above the 22,700 level indicated sustained bullish momentum.

“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,” Arora said.

Meanwhile, Brent crude remained elevated at USD 104.55 per barrel at the time of reporting.

In the domestic bullion market, 24-karat gold was trading at Rs 1,49,535 per 10 grams, while silver was quoted at Rs 2,22,849 per kilogram.

The Indian rupee also extended its recovery for a second consecutive session, trading around the mid-95 level against the US dollar.

Rajeev Sharan, Head of Research at Brickwork Ratings, attributed the currency’s rebound primarily to recent measures by the Reserve Bank of India (RBI) aimed at managing dollar demand.

“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,” Sharan said.

He noted that the RBI’s new arrangement to directly supply state-run oil companies with their daily dollar requirements of approximately USD 300 million had reduced demand in the spot foreign exchange market.

According to Sharan, the central bank had also tightened currency derivative limits to curb speculative activity.

Elsewhere in Asia, major markets ended mostly lower. 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 dropped 5.78 per cent to settle at 6,035.

In contrast, Singapore’s Straits Times index gained 0.28 per cent to close at 5,430, while Hong Kong’s Hang Seng index edged up 0.20 per cent to 24,319.

(ANI Inputs)

The post Sensex surges 1,109 points, Nifty closes above 22,700 as IT stocks lead market recovery appeared first on DD India.

Source link