The Indian stock market witnessed strong intraday buying, with benchmarks the Sensex and the Nifty 50 jumping 1% each in morning trade on Tuesday, 13 October. The Sensex rose 700 points, or 1%, to an intraday high of 72,621, while the NSE counterpart Nifty 50 jumped 1% to the day's high of 22,581 during the session. The mid and small-cap segments were mixed. The Nifty Midcap 150 index rose by 0.50%, while the Smallcap 250 index dropped by 1%.
Let's take a look at three key factors behind the rise in the domestic market benchmarks:
Healthy gains in IT and banking heavyweights lifted the Sensex and the Nifty, as these two sectors cumulatively account for the largest weight in the benchmarks. Around 10:15 am, HDFC Bank, TCS, Infosys, HCL Tech, ICICI Bank, Tech Mahindra, and SBI were among the top contributors to the gains in the Nifty index.
The Nifty IT index jumped 3.5% after healthy Q2 earnings of HCL Tech. Strong dollar and selloff in AI stocks also boosted IT stocks. Bank Nifty gained nearly 1%, boosting the benchmarks.
The Indian rupee rose further by 62 paise to 95.16 against the US dollar in early trade on Tuesday after the Reserve Bank of India (RBI) announced additional measures to alleviate pressure on the currency.