Breaking a four-session losing streak, benchmark equity indices staged a strong recovery on Tuesday, with the BSE Sensex surging 382 points, driven largely by robust gains in information technology stocks.
The 30-share BSE Sensex advanced 382.50 points, or 0.52 per cent, to close at 74,649.84. Of its constituents, 20 stocks ended in positive territory while 10 settled lower. During the session, the benchmark witnessed considerable volatility, rebounding sharply from an intraday low of 73,815.12 and climbing as much as 1,047.07 points to touch a high of 74,862.19.
The broader NSE Nifty also ended higher, gaining 100.95 points, or 0.43 per cent, to settle at 23,483.55, recovering a portion of the losses recorded over the previous four trading sessions. Technology stocks emerged as the primary drivers of the rally. Among the Sensex constituents, Tata Consultancy Services (TCS) led the gains with a sharp rise of 6.53 per cent. Infosys followed closely, jumping 5.66 per cent, while HCL Technologies advanced 4.08 per cent and Tech Mahindra added 1.76 per cent. Other notable gainers included Adani Ports, Titan, Eternal, HDFC Bank and Mahindra & Mahindra.
On the downside, NTPC, Axis Bank, Power Grid Corporation and ICICI Bank were among the major laggards, limiting some of the benchmark's gains. Market experts attributed the recovery to renewed buying interest in technology stocks and sustained investor confidence in large-cap companies.
“Markets recovered from their initial weakness primarily due to strong gains in the IT sector. Continued accumulation in large-cap stocks indicates investor comfort with current valuations, particularly as the Nifty-50 is trading closer to its long-term average valuation levels compared to broader market segments, which continue to appear relatively expensive,” said Vinod Nair, Head of Research at Geojit Investments Limited.
He added that despite the absence of significant progress toward a truce in the Middle East, global market sentiment remained relatively stable, reflecting continued resilience in investor risk appetite. The BSE Information Technology index emerged as the top sectoral performer, soaring 4.40 per cent during the session.
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Meanwhile, global crude oil prices eased, providing some relief to markets. Brent crude, the international benchmark, declined 1.28 per cent to trade at USD 93.76 per barrel. Across Asia, market sentiment was mixed. South Korea’s Kospi, China’s Shanghai SSE Composite Index and Hong Kong’s Hang Seng Index all finished higher, while Japan’s Nikkei 225 ended in negative territory. Major European markets were also trading with gains during afternoon trade.
According to Hariprasad K, Research Analyst and Founder of Livelong Wealth, the sharp rebound was largely fuelled by optimism surrounding global technology spending trends. “The primary catalyst for today’s recovery was the powerful rally in the IT sector. The Nifty IT index gained more than four per cent, led by heavyweight stocks such as TCS and Infosys.
Investor sentiment was boosted by strong earnings and positive outlooks from major US technology firms, reinforcing confidence that spending on artificial intelligence, cloud services and enterprise technology remains resilient despite broader macroeconomic challenges,” he said. Global cues also remained supportive, with US markets ending Monday’s session in positive territory, helping improve investor sentiment across international markets.
However, foreign institutional investors (FIIs) continued to remain net sellers in the domestic market. According to exchange data, FIIs offloaded equities worth Rs 3,911.68 crore on Monday, reflecting ongoing caution among overseas investors.
Tuesday’s recovery came after a weak start to the week. On Monday, the Sensex had declined by 508.40 points, or 0.68 per cent, to settle at 74,267.34. The Nifty also extended its losing streak, falling 165.15 points, or 0.70 per cent, to close at 23,382.60, marking its fourth consecutive session of losses before Tuesday’s rebound.
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