Indian equities staged a robust rebound, with the Sensex and Nifty registering significant gains to erase earlier losses, led primarily by a strong recovery in technology stocks and positive quarterly earnings.

Indian equities staged a robust rebound, with the Sensex and Nifty registering significant gains to erase earlier losses, led primarily by a strong recovery in technology stocks and positive quarterly earnings.

Indian equities staged a robust rebound, with the Sensex and Nifty registering significant gains to erase earlier losses, led primarily by a strong recovery in technology stocks and positive quarterly earnings.

Indian equities staged a strong rebound on Tuesday, with the Sensex rising 1,109.10 points to 73,033.78 and the Nifty gaining 358.60 points to close at 22,721.95. The rally erased Monday’s losses and marked the Sensex’s best single-day gain in four months, but its durability will depend on whether better IT earnings, a steadier rupee and softer oil prices can outlast wider global uncertainty.

The recovery was led by technology stocks, where HCLTech’s September-quarter results gave investors a reason to return to a sector that has been battered by worries over AI disruption and a softer global technology-spending cycle.

HCLTech surged 8.28 per cent after reporting a 21.18 per cent year-on-year rise in consolidated net profit to ₹5,132 crore for the July–September quarter of FY27, aided by stronger margins in advanced AI operations and lower tax outflow.

Tata Consultancy Services gained 6.59 per cent, Tech Mahindra rose 4.90 per cent, and Infosys added 4.44 per cent.

The Nifty IT index jumped 5.2 per cent, its strongest day since May 2025. Yet, the sector remains down 21.2 per cent so far this year, as it did little to dampen investor concern that generative AI could compress pricing and reshape demand for conventional software-services work.

Finance Minister Nirmala Sitharaman’s comments that the ongoing debate on long-term capital-gains tax and securities transaction tax was healthy and that she would listen to views added to market optimism.

However, no policy change was announced, so the resulting buying in blue chips should be read as sentiment-led rather than a confirmed reason.

Tuesday’s move therefore looks more like a powerful value-buying rally after two encouraging earnings prints than conclusive evidence that the sector’s structural concerns have disappeared.

Financial and consumption-linked blue chips added breadth to the advance.

HDFC Bank, ICICI Bank, State Bank of India, Bajaj Finserv, Hindustan Unilever, Titan and Mahindra & Mahindra were among the key contributors, while only Kotak Mahindra Bank, Eternal and Maruti Suzuki ended lower among the Sensex constituents.

Fifteen of the 16 major sectoral indices rose, with mid-caps advancing 1.1 per cent and small-caps edging up 0.1 per cent, indicating that the recovery broadened beyond technology but remained more convincing in large-cap stocks.

The rupee strengthened for a third straight session, gaining about 41 paise to 95.37 per dollar after RBI measures aimed at curbing speculative trading in derivatives. Brent crude fell 1.66 per cent to 104.6 dollars a barrel, easing some immediate pressure on inflation, the current account and corporate margins.

So, going forward, these factors will together determine the strategy, as per market watchers:

  • Rupee needs to keep appreciating
  • Finance minister may have to announce policy changes as per her comments
  • IT stocks need to show more positive indicators going forward
  • Mid-cap and small-cap need to support large-cap rally
  • Brent crude needs to keep falling

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