The Indian stock market staged a sharp recovery on Tuesday (October 13), with the Sensex and Nifty rising more than 1% each as a last-hour surge led by information technology (IT) stocks lifted the benchmarks above key levels. The Sensex jumped 1,109 points to close at 73,034, while the Nifty gained 359 points to end at 22,722.
The Nifty IT index recorded its biggest single-day gain since May 2025, led by strong buying in HCL Technologies (HCLTech) and Tata Consultancy Services (TCS). The broader market also recovered intraday, with the Midcap index rebounding nearly 900 points from its lows.
Why did the stock market rise today? 5 key factors
1. Last-hour buying lifts Sensex, Nifty
The final hour of trade drove the benchmark indices higher, with the Sensex ending 1,109 points up at 73,034 and the Nifty closing 359 points higher at 22,722.
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The Nifty Bank rose 563 points to 55,481, while the Midcap index gained 624 points to close at 59,459. Market breadth remained in favour of advances, with the advance-decline ratio at 1:1.
2. IT stocks lead the rally
The Nifty IT index posted its biggest single-day gain since May 2025. HCLTech surged more than 8%, recording its biggest single-day gain since September 2020, following strong second-quarter results. TCS has gained nearly 10% since announcing its second-quarter results three days ago. Tata Elxsi rose more than 5% ahead of its second-quarter results.
3. Shriram Finance, Mphasis among top gainers
Shriram Finance jumped more than 6% and was among the top Nifty gainers amid reports of a stake hike by Mitsubishi UFJ Financial Group (MUFG). Mphasis and Bandhan Bank were among the top gainers in the broader market. PNB Gilts rose more than 6% following strong second-quarter results.
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4. Paytm, MobiKwik end higher after sharp swings
Paytm and MobiKwik witnessed sharp swings during the session but ended with gains. The National Payments Corporation of India (NPCI) deferred the merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions until Diwali.
5. RBL Bank, ICICI Prudential Life Insurance among laggards
RBL Bank fell more than 7% as net interest margin (NIM) concerns weighed on the stock, with brokerages remaining cautious. ICICI Prudential Life Insurance declined more than 3% as its value of new business (VNB) and VNB margin missed estimates. Maruti Suzuki extended its losses, slipping nearly 1% to hit an 18-month low.
From the Sensex basket, HCL Technologies Ltd, Tata Consultancy Services Ltd, Shriram Finance Ltd, Infosys Ltd, Hindustan Aeronautics Ltd and Bajaj Finserv Ltd were the major gainers. Kotak Mahindra Bank Ltd, Max Healthcare Institute Ltd, Asian Paints Ltd and Power Grid Corporation of India Ltd were the biggest laggards.
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Jai Bala, CMT, Cashthechaos.com, on Market, said, “The market is showing a lot of promise. The market broke the April 2026 low by a very narrow margin and is reversing from there. And so it has the potential to be a false breakdown. We are seeing a follow-through, and I would like to see the Nifty close about 22,900 on a weekly basis, like I said last week.
So that will be a good sign to have. For the first time in several months, there are positive signs coming from Infosys and Wipro. But the Nifty IT index, which we have been avoiding since the 2024 high and also the FMCG index, which we have been avoiding since the 2024 highs, are also showing some short-term promise.
We just have to be a little more patient and see if this follow-through sustains, and we want to see where the market closes on Friday. But as I said, this market is showing a lot of promise.”
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