The Indian stock market witnessed strong buying on Tuesday, 13 October, with benchmarks the Sensex and the Nifty 50 jumping 1.5% and 1.60%. The Sensex rose 1,109 points, or 1.54%, to end at 73,033.78, while the NSE counterpart, the Nifty 50, jumped 359 points, or 1.60%, to close at 22,721.95. The mid and small-cap segments also ended higher. The Nifty Midcap 150 index rose by nearly 1%, while the Smallcap 250 index climbed 0.34%.
Why is the stock market up today?
Let’s take a look at three key factors behind the rise in the domestic market benchmarks:
1. , bank heavyweights shine
Healthy gains in IT and banking heavyweights lifted the Sensex and the Nifty, as these two sectors cumulatively account for the largest weight in the benchmarks. Infosys, HDFC Bank, TCS, ICICI Bank, and HCL Tech were among the top contributors to the gains in the Sensex and the Nifty 50.
The Nifty IT index jumped 5.22% after healthy Q2 earnings of HCL Tech. A strong dollar and a selloff in AI stocks also boosted IT stocks. Bank Nifty gained 1%, boosting the benchmarks.
“Indian equities advanced as stronger-than-expected technology earnings boosted confidence in corporate profit growth and lifted benchmark-heavy large-cap stocks. Rupee stability and easing bond yields further supported sentiment, bringing financial stocks into focus,” Vinod Nair, Head of Research, Geojit Investments, noted.
“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,” said Nair.
2. Rupee rises further
The Indian rupee rose for the third straight session on Tuesday, ending 40 paise higher at 95.38 against the US dollar after the Reserve Bank of India (RBI) announced additional measures to alleviate pressure on the currency.
“The Indian rupee continued its upward trajectory for the third consecutive session, closing near a one-month high. The advance was driven by regulatory measures implemented by the RBI to limit volatility and curb speculative trading, along with the unwinding of long positions, general dollar weakness, lower crude oil prices and recovery in the domestic equity,” Dilip Parmar, Senior Research Analyst at HDFC Securities, noted.
“Having recovered nearly 2% over three days from the recent high, the spot USD/INR has support at 95.00. While a sustained move below this threshold opens potential toward 94.50, ongoing external macroeconomic pressures are likely to temper further gains,” said Parmar.
As per a PTI report, the RBI unveiled a series of measures to curb dollar demand. The central bank reinforced that it would intervene directly in the market, selling dollars to support the currency, according to traders.
3. Oil prices ease
Crude oil prices declined by more than 2% on Tuesday amid the prospects of additional diesel supplies from Russia.
Crude oil benchmark Brent Crude futures traded more than 2% lower near $104 per barrel on Tuesday afternoon.
As widely reported, US President Donald Trump said Russia had agreed to supply diesel to global markets. The Trump administration has temporarily lifted US sanctions on Russian fuel.
Technical outlook for Nifty 50
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, underscored that Nifty formed a long bull candle on the daily chart, completely engulfing Monday’s long bear candle on the upside.
“This market action indicates a sharp comeback of bulls from the lows. This alternative movement candle pattern signals high volatility in the market around the crucial support of the 22,200 level,” said Shetti.
“The Nifty is stuck within a broader high-low range of 22,800-22,300 levels. A decisive move above the immediate resistance at 22,800 could confirm an important bottom reversal pattern for the market, which is likely to open further short-covering in the Nifty ahead. Any weakness could find support around 22,550,” Shetti said.
Ajit Mishra, SVP – research, Religare Broking, said the Nifty’s recovery above 22,700 offers near-term relief following the recent sharp correction. However, the 22,900 level, coinciding with the 20-day exponential moving average (20-DEMA), is likely to act as the immediate hurdle, followed by the 23,000–23,200 zone.
“On the downside, the 22,300–22,500 zone is likely to provide immediate support. Despite the sharp rebound, persistent macroeconomic uncertainties warrant a cautious approach, with a preference for selective stock-specific opportunities and disciplined risk management,” said Mishra.
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