Indian stock markets bounced back sharply on Thursday, October 15, as buying in information technology and banking shares lifted benchmark indices despite weakness across several Asian markets. The Sensex climbed more than 1,000 points during morning trade, while the Nifty 50 crossed 22,900, recovering from losses in the previous session.
The BSE Sensex rose as much as 1,016.70 points to touch 73,798.59, while the NSE Nifty 50 gained 296.90 points to reach 22,919.60 in morning trade. At 10.12 am, the Sensex was up 1.21% at 73,656.40 and the Nifty had gained 1.15% to 22,881.90.
The rally reflected renewed confidence in corporate earnings, particularly in the IT sector, along with easing crude oil prices and a firmer rupee. However, concerns about rising US inflation, possible Federal Reserve rate hikes and continued foreign investor selling remained key risks for Dalal Street.
Information technology shares led the stock market rally for a third consecutive session, supported by optimism following HCLTech’s quarterly results. The Nifty IT index rose 2.4%, taking its gains over three sessions to around 8.3%.
HCLTech, Infosys and Tata Consultancy Services (TCS) each gained around 3% in morning trade. Tech Mahindra advanced 3.5%, while Wipro rose 1.7% ahead of their quarterly earnings announcements scheduled for Thursday.
Investors are looking for signs that technology companies can sustain growth despite uncertainty over global client spending. Quarterly results and management commentary will be important in determining whether the recent gains can continue.
The rally also came as global investors reassessed expensive artificial intelligence-linked stocks following stronger-than-expected US inflation data. Some investors see the correction in global technology shares as a potential opportunity for Indian IT companies, although the impact on foreign investment flows remains uncertain.
Banking stocks provided another important source of support. The Nifty Financial Services index gained around 1%, while the private banking index advanced 1.4%.
HDFC Bank rose 1.2% and ICICI Bank gained 2%, helping lift the benchmark indices. Reliance Industries also contributed to the recovery, with its shares advancing 2.1%.
Twelve of the 16 major sectoral indices tracked in the market update were trading higher, indicating that the gains extended beyond a handful of technology stocks.
However, the broader market remained mixed. The Nifty Smallcap 100 slipped 0.6%, while the Midcap 100 rose 0.3%. This suggested that investors were still selective, favouring large companies with stronger earnings visibility rather than buying indiscriminately across the market.
Not all stocks participated in the rally. IDBI Bank shares fell 6.1% after the government approved the sale of a controlling stake in the lender to Fairfax Financial Holdings in a deal valued at around $5.56 billion.
The proposed transaction remained in focus as investors assessed its implications for the bank’s ownership and future direction.
Tyre manufacturer CEAT declined 3.5% after reporting a fall in September-quarter profit. The reaction highlighted how company-specific earnings can influence share prices even when the broader market is rising.
Enviro Infra gained 4.9% after securing an order worth Rs 228 crore, while ICICI Lombard rose 1% following an increase in its September-quarter profit.
Developments in the currency and commodity markets also supported sentiment. Brent crude prices eased to around $104.40 per barrel in morning trade, retreating from recent levels amid concerns about the global economic outlook and oil supply disruptions.
Lower crude prices can benefit India by reducing its import bill and easing inflationary pressure. This is particularly important for an economy that relies heavily on imported energy.
The rupee also remained in focus after recent appreciation against the US dollar. A stronger domestic currency can help contain import costs, although sustained stability depends on global financial conditions, oil prices and foreign investment flows.
Despite these supportive factors, crude oil remains a significant risk because any fresh disruption to supplies could quickly reverse the recent decline.
The global outlook remained uncertain after US consumer inflation accelerated to 3.7% year-on-year in September, compared with 3.4% in August. The higher reading strengthened concerns that the Federal Reserve may keep interest rates elevated or consider another increase later this year.
Higher US interest rates can make dollar-denominated investments more attractive, potentially drawing funds away from emerging markets such as India. They can also weigh on stock valuations by increasing borrowing costs and reducing the appeal of riskier assets.
Asian markets fell on Thursday, while weakness in artificial intelligence-linked stocks weighed on global sentiment. The Indian market’s gains therefore stood out against a more cautious international backdrop.
Foreign institutional investors sold Indian equities worth Rs 1,857.44 crore on Wednesday, adding to concerns over sustained overseas outflows.
Investors will closely track upcoming quarterly results, especially from technology companies and financial institutions, to assess whether earnings growth can support higher valuations.
The Nifty’s move above 22,900 and the Sensex’s sharp recovery offered relief after Wednesday’s losses. However, continued foreign selling, uncertainty over US monetary policy and volatility in crude oil prices could limit further gains.