Short covering help markets end higher; IT companies rally

PTI mumbai

Snapping a four-day losing streak, benchmark BSE Sensex rebounded by 382.50 points on Tuesday following a strong rally in IT shares.

The 30-share BSE Sensex climbed 382.50 points, or 0.52%, to settle at 74,649.84 with 20 of its constituents ending higher and 10 with losses. The barometer jumped 1,047.07 points to 74,862.19 from its intra-day low of 73,815.12. The 50-share NSE Nifty rose by 100.95 points, or 0.43%, to end at 23,483.55.  

"Markets recovered from initial losses, led by gains in the IT sector, while continued accumulation in large-cap stocks reflected comfort with valuations, as the Nifty-50 trades closer to its long-term averages than the relatively richer valuations in broader markets. Despite ongoing delays in a Middle East truce, global sentiment remained stable, highlighting resilience in risk appetite," Vinod Nair, Head of Research at Geojit Investments Limited, said.

Broader markets also advanced, with the BSE MidCap Select index rising by 0.33% and the SmallCap Select index by 0.19%. 

Brent crude, the global oil benchmark, declined 1.28% to $93.76 per barrel. Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,911.68 crore on Monday, according to exchange data.

IT stocks surge

Information technology (IT) stocks were in heavy demand on Tuesday, with Tata Consultancy Services (TCS) surging 6.53%, propelling a rebound in the broader equity market.    

Hexaware Technologies soared 6.99%, TCS jumped 6.53%, Infosys surged 5.66%, HCL Technologies (HCL Tech) climbed 4.08%, Tech Mahindra went up by 1.76%, and Wipro edged higher by 1.65% on the BSE. 

The BSE IT index climbed 4.40%.  The 30-share BSE Sensex rallied 382.50 points, or 0.52%, to settle at 74,649.84. The 50-share NSE Nifty rose by 100.95 points, or 0.43%, to end at 23,483.55. IT stocks had rallied on Monday also.