Key Takeaways
- Indian benchmark shares rose, led by IT index gains.
- HCLTech reported its best daily percentage rise in over 6 years.
- Tata Consultancy Services also saw significant gains.
Indian benchmark shares witnessed a significant rise on Tuesday, with the IT index leading the gains. The Nifty 50 index increased by 1.6% to 22,721.95, while the BSE Sensex added 1.54% to 73,033.78.
The surge in IT stocks was particularly notable, with the index jumping 5.2%, its best day since May 12, 2025. This was largely driven by the strong performance of HCLTech, which saw its shares rise by 8.4%, its biggest daily percentage increase in over six years.
Arun Malhotra, a fund manager at CapGrow Capital, commented, 'The gains in IT stocks do not reflect a structural reversal for the sector. It is just that better-than-expected earnings from both TCS and HCLTech have provided an opportunity for value hunting.'
Tata Consultancy Services, India’s largest IT company, also saw its shares jump 6.8% after reporting its quarterly earnings on Thursday. The Nifty IT index, however, remains down 21.2% year-to-date due to moderating earnings growth amid AI disruption to traditional software services business.
The broader market saw mixed reactions, with the smallcaps and midcaps rising 0.1% and 1.1%, respectively. However, overall market sentiment remains cautious, with Arun Malhotra noting, 'Overall market outlook still remains hostage to global macroeconomic factors as uncertainty persists in the Middle East and oil prices remain above $100 per barrel.'
Among other notable gains, Shriram Finance saw a 6.3% increase after Bloomberg News reported that Japan’s Mitsubishi UFJ Financial Group is studying ways to gain majority control in the non-bank lender.
Despite the positive gains, market analysts remain cautious. Malhotra added, 'Until these clouds clear, the Indian market is unlikely to see a sustained recovery.'
Asian stocks, however, faced a broader decline, with the region’s indices sliding more than 2% to a more than two-month low. This was driven by a sharp selloff in chipmakers, prompting a broader rethink of the AI trade amid heightened competition, with investors turning towards the safety of government bonds.
The gains in IT stocks do not reflect a structural reversal for the sector. It is just that better-than-expected earnings from both TCS and HCLTech have provided an opportunity for value hunting.
Arun Malhotra, Fund manager at CapGrow Capital
Overall market outlook still remains hostage to global macroeconomic factors as uncertainty persists in the Middle East and oil prices remain above $100 per barrel.
Arun Malhotra, Fund manager at CapGrow Capital
