Indian equity markets staged a sharp rebound on Tuesday, October 13, as benchmark indices BSE Sensex and Nifty50 rallied more than 1% in afternoon trade. The Sensex ended the day at 73,033.78, clocking a gain of 1,109 points or 1.54%. Meanwhile, Nifty50 finished 359 points higher at 22,721.95, up 1.60%. This dramatic rise added a whopping Rs 4.12 lakh crore to the combined market capitalisation of listed companies, pushing the total to Rs 470 lakh crore.
IT Stocks Lead the Charge
The day’s rally had IT stocks written all over it. HCL Technologies’ robust Q2FY27 performance—net profit up 21.2% year-on-year and revenue climbing 11.5%—sparked optimism among investors. HCLTech shares soared more than 6%, helping lift other tech heavyweights like TCS, Infosys, and Tech Mahindra. As a result, the Nifty IT index surged nearly 4.7%, outpacing other sectors and signaling that investors are now focusing on earnings visibility rather than spreading their bets across the board.
Interestingly, part of the fuel for Indian IT’s momentum came from global trends. As AI-linked stocks took a beating abroad—South Korea’s Kospi plunged over 6% and Japan’s Nikkei slipped more than 2%—investors took a shine to Indian technology companies, which are increasingly seen as a safer “anti-AI” trade.
Global Factors and Market Breadth
The rally wasn’t just about IT. Broader market indices also chipped in, with the Nifty Smallcap 100 index gaining over 1% and the Midcap 100 up more than half a percent. Still, market breadth was slightly negative, as 1,930 shares advanced while 1,988 declined and 184 remained unchanged.
Relief came from other corners as well. After reaching multi-year highs, bond yields in the US eased, with the 10-year Treasury falling below 5.2% and the 30-year down to 5.56%. Lower yields tend to soften the competition between bonds and equities, helping stocks attract more funds, especially in emerging markets like India. Meanwhile, the rupee rebounded sharply, gaining 91 paise to 95.80 against the US dollar in early trade, after the Reserve Bank of India intervened to curb currency volatility.
Despite the cheer, analysts like Jateen Trivedi of LKP Securities warned that sustainability of this rally depends on foreign investment flows, crude oil prices, and broader dollar movements. Nonetheless, for now, investors are ending the day noticeably richer and a little more optimistic about the near-term outlook.
