A blowout quarter from jolted out of a two-session slump on Tuesday, triggering a broad-based recovery that saw the Nifty clock its steepest single-session percentage advance since June 12.
The closed at 22,721.95, up 358.60 points or 1.60 per cent, recovering sharply from an intraday low of 22,288. The ended 1,109.10 points higher at 73,033.78, while the Bank Nifty gained 563.05 points to settle at 55,481.05.
The Nifty IT index surged over 5 per cent, the session’s top sectoral performer, with HCL Technologies jumping 8 per cent and TCS rising 6.6 per cent after both companies reported stronger-than-expected quarterly earnings anchored by healthy AI-driven deal wins.
“Markets staged a strong recovery on Tuesday, gaining over one and a half percent and extending the rebound amid the prevailing consolidation phase,” said Ajit Mishra, SVP, Research, Religare Broking. “…IT led the gains, supported by strong quarterly results from HCL Technologies and continued strength in TCS.”
All sectoral indices closed in the green except Nifty Pharma. Realty, consumer durables and FMCG also contributed to gains, while broader markets lagged the benchmarks.
The Nifty Midcap 100 rose 1.06 per cent and the Nifty Smallcap 100 eked out a 0.11 per cent gain, with market breadth positive for a third consecutive session at an advance-decline ratio of 1.38.
Sentiment received an additional tailwind in the afternoon after Finance Minister Nirmala Sitharaman indicated the government was open to hearing stakeholder views on long-term capital gains tax during budget consultations, remarks that lifted capital market stocks even as no formal commitment was made.
Separately, the IMF revised India’s FY27 GDP growth forecast upward to 7 per cent from 6.4 per cent, reinforcing confidence in domestic demand fundamentals.
, gaining 49 paise to close near a one-month high of ₹95.4 against the dollar, supported by measures to curb speculative forex activity and a special dollar facility for oil marketing companies.
eased roughly 2 per cent to around $104.5 a barrel, though it stayed elevated. India’s September retail CPI inflation came in at 5.54 per cent, adding to the uncertain outlook on monetary policy.
On the flows front, had sold ₹1,708 crore on Monday, while domestic institutions countered with ₹3,045 crore in purchases. India VIX fell 7.3 per cent to 14.14, signalling some easing of near-term risk.
On gold, Jateen Trivedi, VP Research Analyst at LKP Securities noted, “Gold traded largely flat near ₹1,49,475, as strength in the rupee offset gains in COMEX Gold… Focus now shifts to the upcoming US CPI data, which will be crucial in shaping expectations around the Fed’s interest-rate trajectory.”
Gaurav Bhandari, CEO of Monarch Networth Capital, who has a Nifty target of 26,000–26,500 over four to five months, pointed to global macro as a potential trigger. “The yield at 5.35 per cent is not a new normal; it is the peak of an extreme that is already breaking the US economy from the inside,” he said, expecting a fall in US yields to redirect global liquidity toward Indian equities as the dollar weakens.
Looking ahead, Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said the Q2 earnings season would drive stock-specific action, with results due from BHEL, ICICI Lombard, HDB Financial Services, Canara Bank and Tata Technologies, among others.
Markets will also track India’s WPI inflation, trade balance data and FX reserves alongside US existing home sales and crude and foreign flows.