Benchmark equity indices rallied sharply in morning trade on Tuesday, with the Sensex rising over 800 points and the Nifty 50 crossing the 23,800 mark, driven largely by strong gains in IT stocks and support from select heavyweights.
The Sensex was up 825.79 points, or 1.09%, at 76,896.63, while the Nifty 50 gained 239.10 points, or 1.01%, to trade at 23,820.25 as of 11:44 AM. It may be noted that the Sensex has gained over 2,000 points this week after a sharp losing spree.
IT STOCKS POWER THE RALLY
Today’s stock market rally was led by information technology stocks, which saw broad-based buying. Infosys rose 4.48% to Rs 1,288.10, while TCS gained 3.50% to Rs 2,475.50. HCLTech and Tech Mahindra also advanced more than 4% each, making IT the top-performing sector in early trade.
The strength in IT stocks, which carry significant weight in benchmark indices, provided the primary push to the market.
SUPPORT FROM LARGE-CAP INDUSTRIALS AND AUTOS
Gains were also seen across other sectors, lending broader support to the rally. Larsen & Toubro rose 1.72%, Mahindra & Mahindra gained over 3%, and Maruti Suzuki was up 1.22%. Bharti Airtel added 1.86%, while Reliance Industries rose 0.84%.
Buying in these heavyweight stocks helped sustain the upward momentum in the benchmarks.
MIXED BANKING STOCKS CAP SHARPER GAINS
However, banking stocks showed mixed trends, preventing a sharper rise in the indices. HDFC Bank declined 0.75% to Rs 839.05, while ICICI Bank and Axis Bank posted modest gains. State Bank of India remained largely flat.
MARKET SENTIMENT REMAINS CAUTIOUS
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said markets have rebounded despite ongoing global uncertainties, supported in part by crude oil prices remaining around the $102 level, easing concerns of a sharp spike.
He noted that in the near term, markets are likely to react moderately to positive developments while remaining sensitive to negative triggers.
Vijayakumar added that while foreign institutional investors have been sustained sellers overall, they have been selectively buying in sectors such as telecom, contributing to resilience in those stocks. He also pointed to a shift in investor preference away from IT and highly valued FMCG stocks towards telecom, pharmaceuticals, defence and select financials.
According to him, market leaders in these segments are likely to remain relatively resilient even in a volatile environment.
Meanwhile, market activity remained strong, with several stocks witnessing high volumes. Eternal rose 2.66% on heavy trading, while Wipro gained 3.38%. Among other stocks, Bajaj Finance slipped 0.59%, and Tata Steel edged lower, reflecting some pressure in select segments.
The broader trend indicated sectoral rotation, with investors adjusting positions across sectors while maintaining exposure to large-cap stocks.
