Sensex
Sensex, Nifty rally after prolonged slump: IT stocks, Rupee gains lift market sentiment
Information technology stocks emerged as the biggest gainers of the session, supported by stronger-than-expected July-September quarter results.
HCL Technologies surged 8.28%, while Tata Consultancy Services (TCS) gained 6.59%. Tech Mahindra advanced 4.90%, and Infosys climbed 4.44%, providing significant support to the benchmark indices.
Other major gainers included Hindustan Unilever (HUL), Titan, Bajaj Finserv, State Bank of India (SBI), HDFC Bank, Mahindra & Mahindra (M&M) and ICICI Bank.
According to a LiveMint report, Indian equities advanced as stronger-than-expected technology earnings boosted confidence in corporate profit growth and lifted large-cap stocks.
The report also cited rupee stability and easing bond yields as additional factors supporting market sentiment, with financial stocks attracting investor attention.
“Strong IT-led start and expectations of a decent overall Q2 corporate performance suggest the market is pricing in resilience despite a challenging external environment,” Nair said, according to the report.
Indian Rupee Rises for Third Consecutive Session
The Indian rupee also extended its gains for the third consecutive trading session on Tuesday, strengthening by 40 paise to close at 95.38 against the US dollar, according to the reported figures.
Dilip Parmar, Senior Research Analyst at HDFC Securities, attributed the currency's appreciation to regulatory measures introduced by the Reserve Bank of India (RBI) to curb volatility and speculative trading.
“The Indian rupee continued its upward trajectory for the third consecutive session, closing near a one-month high,” Parmar said, according to LiveMint.
He added that the recovery was supported by the unwinding of long positions, broad-based weakness in the US dollar, lower crude oil prices and the rebound in domestic equities.
Falling Crude Oil Prices Support Sentiment
A decline of more than 2% in crude oil prices also contributed to the improvement in market sentiment.
Lower crude prices can help ease India's import bill and inflationary pressures, potentially supporting the rupee and improving the outlook for businesses with significant energy and transportation costs.
The combination of strong IT earnings, gains in banking stocks, currency appreciation and softer crude prices helped domestic benchmarks rebound sharply on Tuesday.
However, the sustainability of the recovery will depend on upcoming corporate earnings, global market trends, movements in crude oil prices and further developments in currency markets.
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