Strong buying in technology stocks following HCL Technologies’ upbeat September-quarter performance powered a solid rally on Dalal Street on Tuesday. A recovery in the domestic currency, along with a pullback in crude oil prices, also aided the much-needed rebound.
The Nifty 50 climbed 1.60% to settle at 22,721, while the Sensex closed at 73,033, up 1.54% from Monday’s close.
After facing sustained selling pressure, the markets finally caught a breather as the September-quarter earnings season got underway, with early results from the technology sector providing a positive surprise. A reassessment of the global artificial intelligence (AI)-led trade, amid concerns over elevated valuations, may also have encouraged investors to return to software stocks.
Markets also received an additional boost after Finance Minister Nirmala Sitharaman indicated her willingness to hear views on the securities transaction tax (STT) levied on share trading, raising hopes of a possible reassessment of the levy.
Tuesday’s rally was largely driven by technology stocks, with the Nifty IT index surging 5.5%. HCL Technologies led the gains, soaring 8.4%—its biggest single-day percentage rise in more than six years—as improved profitability metrics and strong quarterly results lifted sentiment.