Sensex Climbs 1,109 Points to Close at 73,034, Nifty at 22,722; HCL Tech Results and FM's LTCG-STT Remarks Lift Market
Indian equity markets staged a solid recovery on Tuesday after Monday's fall. The BSE Sensex rose 1,109.10 points, or 1.54%, to close at 73,033.78. The NSE Nifty 50 gained 358.60 points (1.60%) to end at 22,721.95. Buying in IT stocks was the biggest driver of the rally. Gains picked up pace in the final hour after Finance Minister Nirmala Sitharaman's comments.
By calculation, the Sensex had closed at around 71,925 and the Nifty at around 22,363 on Monday. Trading remained choppy through Tuesday's session, but the market stayed in the green for most of the day. The Nifty Midcap index rose 0.7%, while the Smallcap index ended almost flat, which means buying was concentrated in larger stocks. India VIX fell about 7.5% to 14.12.
HCL Tech Results
The company announced its September quarter results after market hours on Monday. Consolidated net profit came in at ₹5,132 crore, up 21.2% from the same quarter last year. Revenue from advanced AI rose 78% to $219 million. Operating margin improved 131 basis points from the previous quarter to 18.2%. The company raised the lower end of its FY27 revenue growth guidance from 1% to 2.5%.
On Tuesday morning, the stock rose about 4% to ₹1,272. HCL Tech was the top gainer on the Nifty, followed by TCS, Shriram Finance, Tech Mahindra and Infosys. The Nifty IT index gained about 4%, with TCS, HCL Tech and Tech Mahindra rising between 2% and 5%.
Eternal, Kotak Mahindra Bank, Max Healthcare, Power Grid and Maruti Suzuki were among the biggest laggards. Except for healthcare, all sectoral indices closed higher. The realty index rose more than 1%. FMCG gained about 1%, helped by Hindustan Unilever and ITC.
What the Finance Minister Said
At the Bloomberg New Economy Forum, Sitharaman was asked about LTCG tax and STT. She said the government would listen to investors' suggestions and that it was good for the issue to be debated. She did not promise any changes. Her position was that budget preparations have begun, so it would not be appropriate to say what the government will or will not consider.
In other words, no tax relief has been announced. The market nonetheless read her remarks as a positive signal. SBI Research has earlier recommended scrapping LTCG on equities. Foreign portfolio investors have pulled out more than ₹3 lakh crore so far in 2026, which is why investors are watching for any tax-related signal.
Crude, Rupee, Gold and Silver
Brent crude fell about 1% to around $105.6 per barrel. Prices eased on reports of a proposed energy ceasefire between Russia and Ukraine and additional Russian diesel supply. The price is still above $100, which remains a concern for oil-importing India.
The rupee was seen at around 95.6 per dollar during trade. It had closed at 96.73 last week. The RBI raised the repo rate by 25 basis points to 5.5% on October 7, and the rupee closed at 96.78 that day. On MCX, gold was softer at around ₹1,49,517 per 10 grams, while silver rose to ₹2,22,947 per kg.
Other Company News
ICICI Prudential Life's Q2 FY27 net profit rose 25% to ₹374 crore. Net premium income grew 16.6% to ₹13,804 crore. Aequs signed long-term supply agreements with Safran for landing gear and aircraft components.
According to analysts, 22,800 is resistance for the Nifty. A sustained move above it could take the index towards 23,000. Support is seen at 22,600 and 22,300.
IT: CAUTIOUS BUY. Results are good, but AI continues to put pressure on services pricing. Banking and FMCG: HOLD. Oil-dependent sectors such as paints, aviation and chemicals: CAUTIOUS, as long as crude stays above $100.
Key Signals to Watch: FII selling, Brent crude, the rupee's level, and government signals on taxes ahead of the Budget.
Disclaimer: This article is for information only and is not investment advice. Please consult your advisor before investing.
