Sensex gains over 650 points, Nifty crosses 22,550 mark
What's the story
The Indian equity benchmarks, Sensex and Nifty, witnessed a strong recovery on Tuesday morning. The Sensex gained over 650 points to 72,541 while the Nifty rose by nearly 200 points to cross the 22,550 mark. The rally was led by gains in IT stocks with HCL Tech witnessing a spike of over 5% after its stellar Q2 results.
Market performance
Broader markets display mixed trends
The broader markets displayed mixed trends with the Nifty Midcap 100 in the green while Nifty Smallcap 100 slipped into negative territory.
Among other stocks, Trent, Eternal, HDFC Bank, Hindustan Unilever, Bajaj Finserv, ITC and SBI gained up to 2%.
NTPC shares fell nearly 1% leading losses on Sensex.
Sectoral gains
IT stocks lead rally
The rally was led by a sharp rise in heavyweight IT stocks, despite existing headwinds. This comes as the overall downtrend in global AI stocks boosted sentiment for India's tech giants.
South Korea's Kospi, a major player in the AI frenzy, crashed over 6%, while Japan's Nikkei fell over 2%.
Currency impact
Indian rupee jumps by 82 paise
The Indian rupee jumped by 82 paise to 94.96 against the US dollar in early trade on Tuesday.
This comes after the Reserve Bank of India (RBI) tightened rules on rupee non-deliverable derivative contracts and widened a 20% cash reserve requirement to banks' own rupee currency hedges.
"These steps are expected to reduce pressure on the spot market and curb speculative dollar buying," said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities.