Indian Equities Post Strong Gains As IT Stocks Rally

Indian equities posted a strong rebound on Tuesday, led by a sharp rally in IT stocks after HCL Tech delivered quarterly results, even as investors looked past higher inflation data. Nifty 50 rose 358.60 points, or 1.60%, to close at 22,721.9, while the Sensex gained 1,109.10 points, or 1.54%, to settle at 73,033.78. Information technology emerged as the standout sector with gains of over 3%, as HCL Tech jumped about 7% following strong profit growth, improved margins, and an upgrade to the lower end of its full-year revenue forecast. TCS gained around 6%, while Tech Mahindra and Infosys also saw increases. Hindustan Unilever and Bajaj Auto added about 3% each. Data released on Monday showed that retail inflation rose to 5.54% in September from 4.83% in August, while food inflation climbed to 7.74%. Despite this, domestic institutional buying absorbed foreign selling, and a firmer rupee supported market sentiment. Market breadth remained positive, with 2,128 stocks advancing, 1,418 declining, and 98 remaining unchanged.

Context

Share markets react constantly to shifting economic data like retail inflation figures alongside corporate earnings reports. Broad market participation across multiple sectors often signals robust underlying demand during recovery phases.