Benchmark stock market indices staged a strong recovery on Tuesday, bouncing back from their lowest levels in nearly two months as investors returned to beaten-down large-cap stocks and continued buying technology shares.
The S&P BSE rose 382.50 points, or 0.52%, to close at 74,649.84, while the NSE Nifty50 gained 100.95 points, or 0.43%, to settle at 23,483.55.
The recovery was notable given the sharp weakness seen earlier in the session. The Sensex had plunged to an intraday low of 73,815.12, down 452.22 points from its previous close of 74,267.34. From that low, the index rebounded nearly 835 points to end the day in positive territory.
Similarly, the Nifty slipped to a low of 23,229.15 during the session, falling 153.45 points from its previous close of 23,382.60. The benchmark then recovered more than 254 points from the day’s low before ending higher.
Markets had come under pressure over the past four sessions due to concerns surrounding the Iran conflict and heavy foreign investor outflows, with the Nifty and Sensex losing nearly 3% during that period. Sentiment improved on Tuesday after US President Donald Trump said talks with Iran were still underway, easing fears that diplomatic negotiations had completely broken down.
Lower crude oil prices also supported sentiment. Brent crude fell 1.24% to $93.80 a barrel, while WTI crude declined 1.28% to $90.98. The fall in oil prices offered some relief to India, which remains heavily dependent on energy imports.
Technology stocks remained the biggest drivers of the market rebound.
The Nifty IT index surged 4.23%, extending its two-day rally to about 7%. The gains came amid continued optimism around artificial intelligence spending globally and hopes that demand for software services will remain strong.
Among Sensex constituents, Tata Consultancy Services emerged as the top gainer, rising 6.53%. Infosys jumped 5.66%, HCL Technologies gained 4.08%, and Tech Mahindra advanced 1.76%. These four IT heavyweights were the biggest contributors to the recovery in benchmark indices.
Adani Ports and Special Economic Zone gained 1.84%, while Titan Company added 1.34%.
On the losing side, NTPC fell 2.89%, Axis Bank declined 1.74%, Power Grid Corporation dropped 1.38%, ICICI Bank lost 1.06%, and Bajaj Finance slipped 0.91%.
Broader markets also ended in positive territory. The Nifty Midcap 100 rose 0.19%, while the Nifty Smallcap 100 gained 0.40%.
Investor anxiety eased significantly, with India VIX falling 7.17%.
Among sectoral indices, Nifty IT was the clear outperformer with gains of 4.23%. Nifty Consumer Durables rose 1.30%, while Nifty FMCG gained 0.76% and Nifty Auto advanced 0.72%.
However, some pockets of the market remained under pressure. Nifty Pharma fell 0.86%, Nifty Financial Services declined 0.63%, and Nifty Healthcare Index lost 0.52%.
The rupee ended at 95.2650 against the US dollar, down 0.3% from the previous session. While a weaker rupee generally benefits export-oriented sectors such as information technology, it continues to reflect concerns around capital outflows and external pressures.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “Markets recovered from initial losses, led by gains in the IT sector, while continued accumulation in large-cap stocks reflected comfort with valuations, as the Nifty 50 trades closer to its long-term averages than the relatively richer valuations in broader markets.”
He added, “Despite ongoing delays in a Middle East truce, global sentiment remained stable, highlighting resilience in risk appetite. With the earnings season largely concluded, investor focus has shifted to key macro factors including monsoon progress, inflation trends, RBI policy, and liquidity conditions.”
Nair noted that the monsoon’s advance into southern regions could provide near-term support to sentiment. “While rainfall is projected to be below the long-period average and emerging El Nino risks warrant monitoring, healthy reservoir levels, well above the 10-year average, offer a cushion against potential shortfalls,” he said.
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