Indian benchmark shares jump as encouraging HCLTech earnings propel IT buying
Indian benchmark shares rose on Tuesday, led by the IT index’s biggest one-day gain in more than 17 months after estimate-beating results from HCLTech and as the central bank’s support for the rupee boosted sentiment. The Nifty 50 rose 1.6% to 22,721.95 and the BSE Sensex added 1.54% to 73,033.78. The Indian rupee rose to 95.28 per dollar, marking its second consecutive session of recovery, as…
Indian benchmark shares experienced a significant surge on Tuesday, driven by strong earnings from HCLTech and support from the central bank for the rupee. The Nifty 50 index climbed 1.6% to 22,721.95, while the BSE Sensex gained 1.54% to 73,033.78. The Indian rupee strengthened to 95.28 per dollar, marking a second consecutive day of recovery after the Reserve Bank of India introduced additional measures to cushion the currency.
IT stocks saw a notable 5.2% increase, the highest since May 12, 2025, with HCLTech leading the charge at an 8.4% rise, its largest single-day percentage gain in over six years. HCLTech's robust performance was fueled by improved profitability metrics and impressive quarterly results. Tata Consultancy Services, India's largest IT firm, also benefitted from this trend, posting a 6.8% gain following its quarterly earnings release.
Arun Malhotra, a fund manager at CapGrow Capital, noted that the IT stocks' rise is not an indication of a sector-wide turnaround but rather an opportunity for value investors, fueled by HCLTech and TCS's estimate-beating earnings. The Nifty IT index has underperformed by 21.2% year-to-date due to dwindling earnings growth amid the impact of AI on traditional software services.
Despite 15 out of the 16 major sectors rising on Tuesday, the overall market outlook remains contingent on global macroeconomic factors, particularly the uncertainty surrounding the Middle East and the persistently high oil prices above $100 per barrel. As long as these challenges remain unresolved, the Indian market is expected to face difficulties in achieving a sustained recovery.
Among the notable stock movements, Shriram Finance saw a 6.3% increase following reports that Japan's Mitsubishi UFJ Financial Group was exploring the possibility of acquiring a majority stake in the non-bank lender. Asian stocks declined by more than 2%, touching a two-month low, as a sharp sell-off in chipmakers ignited a wider reassessment of the AI trading strategy, prompting investors to gravitate towards the relative safety of government bonds.
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