- Nifty 50 rose 0.68% to 22,515.90, Sensex gained 0.67% to 72,409.43 in early trade
- IT stocks led gains with Nifty IT up over 3%, driven by strong Q2 earnings
- Brent crude fell 1.2%, easing inflation and rupee pressure, aiding markets
After a brutal selloff in the preceding session, the Indian equity market rebounded on Tuesday, with the benchmark indices rising by more than a half-a-percentage point in early trade. The fightback from the Dalal Street bulls came despite negative global cues, with South Korea's Kospi index leading an Asian market rout with a 7% crash.
At 10:58 am, the Nifty 50 was trading at 22,515.90, up 152.55 points or 0.68% from Monday's close of 22,363.35. The Sensex was at 72,409.43, up 484.75 points or 0.67% from its previous close of 71,924.68.
Both indices have given up some of their early strength. The Sensex hit an intraday high of 72,620.91, up 0.97% from the previous close. The Nifty touched 22,581.15, also up 0.97%.
Here are three reasons the market is up.
1. IT stocks lead on Q2 earnings
The biggest push came from information technology. Nifty IT rose more than 3% in morning trade, with all 10 constituents in the green early in the session.
HCLTech was the top gainer, rising nearly 5% after its September-quarter consolidated net profit rose 11% sequentially to Rs 5,132 crore. TCS gained about 4% in early trade, a week after its own results, while Tech Mahindra rose about 2% and Infosys about 1.5%.
IT's strength stands out on a day when the global move was driven by a chip selloff. The Kospi fell on worries about the AI boom, but Indian IT is trading on its own results.
2. Crude eases and the RBI's rupee steps help
The second reason is the macro backdrop. Brent crude fell about 1.2% to around $105.4 a barrel, though it remains elevated. Lower crude helps India, which imports most of its oil, by easing pressure on the import bill, inflation and the rupee.
The Reserve Bank of India's measures to curb rupee volatility, announced since the weekend, also helped sentiment. The local unit opened 63 paise higher at 95.17 against the dollar, from Monday's close of 95.78.
The India VIX, the market's fear gauge, fell 1.78% to 14.98 in early trade, which also helped in soothing investors' sentiments. It had jumped 7.5% on Monday.
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3. A rebound from lows, backed by the IMF upgrade
The third is a bounce after a heavy session of selling. The Nifty had fallen 0.7% on Monday and slipped below 22,400 — a critical support level flagged by analysts. It has since moved back above 22,500, although it is still below Friday's close of 22,520.45.
The International Monetary Fund added to the backdrop by raising India's growth forecast for 2026-27 to 7 per cent from 6.4%, citing resilient domestic demand and strong services activity, Business Standard reported. The RBI and the World Bank each raised their forecasts to 7.1% last week.
Not everything is rising
The rebound is narrow. At 11:14 am, the Nifty Midcap 100 index was up 0.19%, but the Nifty Smallcap was down 0.77%. Pharma, healthcare and media stocks were also lower. RBL Bank fell more than 7% after its Q2 results disappointed investors.
Foreign investors remain a drag. FIIs sold Rs 1,708.48 crore of equities on Monday, per exchange data, and have pulled out a record Rs 3.08 lakh crore in the first nine months of 2026.
Whether the Nifty can hold above 22,500 will depend on whether that selling slows and how Asian markets settle after the Kospi crash.
ALSO READ: 'Hot Money Leaving Emerging Markets': Five Reasons Behind FII Exodus Crossing Rs 3 Lakh Crore
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