Indian benchmark shares rose on Tuesday, led by the IT index’s biggest one-day gain in more than 17 months after estimate-beating results from HCLTech and as the central bank’s support for the rupee boosted sentiment.
The Nifty 50 rose 1.6% to 22,721.95 and the BSE Sensex added 1.54% to 73,033.78.
The Indian rupee rose to 95.28 per dollar, marking its second consecutive session of recovery, as the Reserve Bank of India announced more measures to alleviate pressure on the currency.
Information technology stocks jumped 5.2%, its best day since May 12, 2025. HCLTech soared 8.4%, its biggest daily percentage rise in over 6 years, and was the biggest gainer on the sub-index as profitability metrics improved and led to strong quarterly results.
India’s largest IT company Tata Consultancy Services, which reported its quarterly earnings on Thursday, also jumped 6.8%.
“The gains in IT stocks do not reflect a structural reversal for the sector. It is just that better-than-expected earnings from both TCS and HCLTech have provided an opportunity for value hunting,” said Arun Malhotra, fund manager at CapGrow Capital.
The Nifty IT index is down 21.2% year-to-date due to moderating earnings growth amid AI disruption to traditional software services business.
Fifteen of the 16 major sectors rose on Tuesday. The broader smallcaps and midcaps rose 0.1% and 1.1%, respectively.
“Overall market outlook still remains hostage to global macroeconomic factors as uncertainty persists in the Middle East and oil prices remain above $100 per barrel. Until these clouds clear, the Indian market is unlikely to see a sustained recovery,” Malhotra said.
Among stocks, Shriram Finance jumped 6.3% after Bloomberg News reported that Japan’s Mitsubishi UFJ Financial Group is studying ways to eventually gain majority control in non-bank lender.
Asian stocks slid more than 2% to a more than two-month low as a sharp selloff in chipmakers prompted a broader rethink of the AI trade amid heightened competition, driving investors toward the safety of government bonds.