Last Updated on October 13, 2026 11:56 pm by INDIAN AWAAZ
Nifty IT jumps 5.22% to a 17-month high; HCLTech rallies 8.42%; inflation climbs to 5.54%, keeping economic risks in focus
By Our Business Correspondent
Indian equity benchmarks staged a strong recovery on Tuesday, snapping the previous session’s losses as aggressive buying in information technology stocks lifted investor sentiment. Better-than-expected quarterly results from HCLTech and Tata Consultancy Services (TCS), coupled with a recovery in the rupee following recent Reserve Bank of India (RBI) measures, supported the rebound.
The rally came despite persistent concerns over elevated crude oil prices, geopolitical tensions and rising domestic inflation. Investors also assessed the International Monetary Fund’s (IMF) upward revision to India’s growth forecast, which reinforced expectations of resilient economic activity even as the global outlook remained uncertain.
The BSE Sensex jumped 1,109.10 points, or 1.54%, to close at 73,033.78, while the NSE Nifty 50 advanced 358.60 points, or 1.60%, to settle at 22,721.95, moving back above the psychologically important 22,700 mark.
The Nifty IT index emerged as the session’s standout performer, surging 5.22% to 29,830.10, its strongest performance in more than 17 months. HCLTech led the rally after announcing higher quarterly profits and revenue, while TCS and other major technology companies recorded substantial gains.
Buying extended to the broader market, although mid-cap and small-cap stocks underperformed the frontline indices. The Nifty Midcap 150 gained 0.95%, while the Nifty Smallcap 250 advanced 0.35%.
Market breadth on the BSE remained positive, with 2,518 shares advancing, 1,834 declining and 251 remaining unchanged.
IT stocks drive recovery
The IT sector’s strong performance provided the principal impetus for the market rebound. Investors responded positively to quarterly earnings announcements and reassessed the near-term outlook for technology companies after recent concerns about global demand, artificial intelligence-related disruption and competitive pressures.
HCL Technologies surged 8.42%, while TCS gained 6.79%. Tech Mahindra advanced 4.93%, LTM rose 4.88%, Mphasis climbed 4.79%, Coforge gained 4.46%, Wipro advanced 4.45%, Infosys rose 4.13%, Persistent Systems added 3.47% and Oracle Financial Services Software gained 2.70%.
HCLTech reported consolidated net profit of Rs 5,132 crore for the July-September quarter of FY27, an increase of 10.99% from Rs 4,624 crore in the preceding quarter. Revenue from operations rose 3.01% sequentially to Rs 35,620 crore from Rs 34,579 crore.
The company’s FY27 guidance envisages revenue growth of 2.5-4% year-on-year in constant currency terms, including services revenue growth of 3-4%. It expects an EBIT margin of 17.5-18.5%.
The results helped improve sentiment towards the sector, although the outlook remains dependent on global technology spending, discretionary IT budgets and the pace of demand recovery among major overseas clients.
The rally also demonstrated the influence of earnings visibility on market performance. However, a sharp one-day advance does not by itself establish a sustained sectoral recovery, particularly given continuing concerns over artificial intelligence’s potential impact on traditional IT services and pricing.
Inflation and oil remain key concerns
The market’s gains came against a challenging domestic inflation backdrop. India’s retail inflation accelerated to 5.54% in September from 4.83% in August, according to provisional Consumer Price Index data released by the Ministry of Statistics and Programme Implementation. Food inflation rose to 7.74% from 5.97%, adding to pressure on household budgets.
Although headline inflation remained within the RBI’s 2-6% tolerance band, it moved further above the central bank’s 4% medium-term target. Persistent food-price pressures and higher energy costs could complicate the monetary policy outlook by limiting the scope for easing if inflation remains elevated.
For equity investors, the inflation trajectory matters because sustained price pressures can affect consumption, corporate input costs and interest-rate expectations. Companies with limited pricing power could face margin pressure, while higher borrowing costs may weigh on interest-sensitive sectors.
Crude oil remained another major risk. Brent crude futures for December 2026 delivery fell $2.16, or 2.03%, to $104.49 a barrel. Despite the decline, prices remained elevated, keeping concerns over India’s import bill, inflation and the external balance firmly in focus.
As a major oil importer, India remains vulnerable to sustained increases in international crude prices. Expensive energy can raise transport and manufacturing costs, increase demand for dollars and complicate efforts to contain inflation.
The yield on India’s 10-year benchmark government security eased to 7.348% from 7.382% in the previous session. Gold futures for December delivery on the Multi Commodity Exchange slipped 0.06% to Rs 1,49,450.
Rupee strengthens, IMF upgrades growth outlook
The rupee strengthened against the US dollar following recent RBI measures aimed at easing pressure in the foreign exchange market. The partially convertible currency was quoted at 95.3800 per dollar against the previous close of 96.7850, according to the supplied market data.
The currency’s recovery offered some relief by reducing immediate concerns over imported inflation, although sustained stability will depend on oil prices, capital flows and broader dollar movements. The US Dollar Index declined 0.24% to 102.34.
The IMF’s decision to raise India’s growth forecast provided an additional positive signal for the domestic outlook. It projected India’s economy to expand by 7% in both FY27 and FY28, revising its earlier forecasts of 6.4% and 6.7%, respectively. Strong domestic demand, services activity, favourable demographic trends and structural reforms were identified as supporting factors. <Cite refs={[“turn843201news49″,”turn843201news53”]}/>
The IMF also raised its global growth forecast for 2026 to 3.1% from 3% while retaining its 2027 projection at 3.4%. Global inflation is projected at 4.7% in 2026, with the 2027 forecast raised to 4.1% from 3.9%.
The revised projections underline India’s relative growth strength but do not remove the risks arising from energy prices, geopolitical tensions and weaker activity in major trading partners. The combination of robust domestic demand and external uncertainty will remain important for corporate earnings and investor sentiment.
Global markets remain mixed
Overseas markets offered mixed signals. European shares advanced, while Asian equities ended on a mixed note as investors weighed technology-sector competition, elevated oil prices and concerns over global growth.
South Korean technology stocks remained under pressure amid reports that Chinese memory-chip manufacturer ChangXin Memory Technologies was advancing its higher-density DRAM technology. The development raised concerns over intensifying competition in the global semiconductor industry, weighing on sentiment towards Samsung Electronics and SK Hynix.
Chinese automakers also faced pressure following weaker September retail sales, while investors assessed the implications of energy costs and geopolitical uncertainty.
On Wall Street, trading was mixed on Monday. The Dow Jones Industrial Average rose 195.60 points, or 0.38%, to 51,850.55, while the S&P 500 slipped 0.06% to 7,807.24 and the Nasdaq Composite declined 0.44% to 27,245.90. Technology and semiconductor shares weighed on the broader market, while energy stocks benefited from higher oil prices.
Investors were also monitoring US inflation data, producer prices and retail sales, alongside quarterly results from major banks including JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo. These indicators could influence expectations for Federal Reserve policy and provide insight into consumer spending, credit demand and the health of the US economy.
Stock-specific developments
Outside IT, Bandhan Bank gained 9.21% amid reports that Abu Dhabi-based International Holding Company and First Abu Dhabi Bank were in preliminary discussions to acquire a stake in Bandhan Financial Services, the bank’s promoter entity.
Bandhan Bank subsequently clarified that it was unaware of the reported development, had received no communication regarding the proposed transaction and had no material announcement pending. The reported discussions should therefore be treated as unconfirmed.
RBL Bank fell 7.10% despite reporting a sharp increase in quarterly profit. Its standalone net profit rose 170% year-on-year to Rs 481.8 crore in Q2 FY27 from Rs 178.5 crore a year earlier. Net interest income increased 37% to Rs 2,131 crore, while net interest margin improved to 4.61% from 4.51% a year earlier and 4.13% in the preceding quarter.
Indian Bank advanced 3.37% after announcing that its board would meet on October 15 to consider a fund-raising proposal. Polycab India declined 1.37% following the NSE’s announcement that the stock would be excluded from the futures and options segment with effect from December 30, 2026.
Vikran Engineering surged 11.91% after its wholly owned subsidiary, NOPL Solar Projects, signed a Rs 2,941.19-crore loan agreement with the Indian Renewable Energy Development Agency to partly finance a solar power project in Maharashtra.
HD Fire Protect IPO subscribed 4.46 times
The initial public offering of HD Fire Protect attracted bids for 8.21 crore shares against 1.84 crore shares on offer, representing subscription of 4.46 times as of 4:33 pm on October 13, according to the supplied exchange data.
The issue opened on October 13 and will close on October 15. The price band has been fixed at Rs 258-271 per share, with a minimum application of 55 shares and multiples thereafter.
Outlook
Tuesday’s rebound restored some confidence to the market after the previous session’s decline, with IT earnings and currency strength providing near-term support. The IMF’s upgraded growth outlook also reinforced India’s relative economic resilience.
However, the sustainability of the recovery will depend on further earnings signals, the trajectory of crude oil prices, inflation trends and global monetary policy expectations. Investors will continue to weigh India’s domestic growth advantages against external vulnerabilities, particularly energy dependence and geopolitical uncertainty.
Disclaimer: Stock market investments are subject to market risks. Please consult with a certified financial advisor before making any investment decisions.