Mumbai: Dalal Street witnessed one of its strongest sessions in recent memory on Thursday, as the Sensex and Nifty staged a powerful comeback. Shrugging off weak global cues, the benchmarks surged through the day, powered by a thunderous rally in information technology stocks and fresh optimism around big-ticket corporate action.
The 30-share BSE Sensex jumped more than 1,500 points in midday trade, climbing 2.1 percent to 74,313.63 by 1:38 pm. The 50-share NSE Nifty surged 429.80 points, or 1.9 percent, to 23,052.50, crossing the 23,000 mark after a long wait. The advance steadily gathered steam through the session.
IT stocks steal the show
The undisputed leader of Thursday’s rally was the IT sector. The Nifty IT index was the best-performing sectoral index of the day, extending its three-session rise to about 8.3 percent. Infosys, TCS and HCLTech each added roughly 3 percent, while Tech Mahindra climbed nearly 4 percent to Rs 1,633.30.
The trigger was HCLTech’s better-than-expected September quarter results, which reignited investor faith in the sector. With Wipro and Tech Mahindra’s quarterly numbers due later today, traders were betting on a broader earnings turnaround for India’s tech giants.
Telecom also joined the party. Bharti Airtel surged 3.98 percent to Rs 1,866.00, among the top Nifty gainers. Reliance Industries added over 2 percent, buoyed by news from its digital arm.
What drove the rally
Market watchers pointed to a mix of domestic and global factors behind Thursday’s surge:
- Strong IT earnings: HCLTech’s results beat street expectations, lifting the entire technology pack and reviving confidence in large-cap IT.
- Easing crude: Brent crude fell 1.60 percent to USD 104.4 per barrel, cooling fears of imported inflation.
- Jio IPO buzz: Jio Platforms filed its red herring prospectus for India’s largest IPO, a fresh issue of up to 270 million shares at Rs 1,065 to Rs 1,119 each, seeking Rs 30,213 crore. Subscription runs October 21 to 23, with the anchor book opening October 19.
- AI selloff helping India: The correction in global AI stocks is being read as a positive, with analysts expecting foreign investors to slow their selling of Indian equities.
A rally against the global tide
What makes Thursday’s surge remarkable is that it came against a sharply negative global backdrop. A hotter-than-expected US inflation print, rising from 3.4 percent in August to 3.7 percent in September, spooked Wall Street overnight. The Nasdaq corrected 1.88 percent and the S&P 500 fell 1.11 percent as bets on another Fed rate hike hardened.
The selloff spilled into Asia. South Korea’s KOSPI plunged 7.7 percent to 5,548.78, triggering an automatic trading halt. Japan’s Nikkei 225 dropped 4.56 percent, and the KOSPI has now fallen for seven straight sessions, losing around 20 percent in the period.
Yet Indian equities stood apart. Analysts said the divergence reflects a simple logic: foreign investors who have been dumping Indian stocks to chase AI plays abroad may now pause or even reverse course. “The correction in AI stocks is a positive sign for the Indian market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments. “The strength in IT stocks following the results of HCLTech and the optimism surrounding that will hold the IT index strong.”
Foreign Institutional Investors sold equities worth Rs 1,857.44 crore on Wednesday, according to exchange data. Whether Thursday’s rally can break that selling streak is the question traders will watch closely.
Not everyone celebrated
The rally was broad but not universal. Nestle India was the steepest Nifty loser, falling 3.93 percent to Rs 1,328.90 after its quarterly results disappointed. Trent dropped 1.63 percent to Rs 2,922.50.
Outside the index, IDBI Bank plunged 6 percent after the government announced it would sell a 30.48 percent stake, with LIC divesting another 30.24 percent. Canara Bank fell 5 percent after Q2 earnings, though the numbers were largely in line. Sterlite Technologies, MTAR Technologies and HFCL all hit the 5 percent lower circuit.
What to watch next
Several events could shape the market’s direction from here. Wipro and Tech Mahindra report their September quarter numbers today, and strong results could extend the IT-led rally. SEBI’s Secondary Market Advisory Committee also meets today to discuss feedback on the newly introduced closing auction session framework.
Next week, all eyes turn to the Jio Platforms IPO, India’s biggest ever, which opens for subscription on October 21. A blockbuster listing could inject fresh energy into the market just as the festive season gets underway.
FAQs
How much did the Sensex rise today?
The Sensex surged over 1,500 points, or 2.1 percent, to 74,313.63 in midday trade on Thursday, October 15.
Did the Nifty cross 23,000 today?
Yes. The Nifty 50 climbed 429.80 points, or 1.9 percent, to 23,052.50, crossing 23,000 after a long time.
Which stocks led the rally?
IT stocks led the charge: Tech Mahindra rose nearly 4 percent, while Infosys, TCS and HCLTech each gained about 3 percent. Bharti Airtel surged close to 4 percent.
Why did the market rise despite weak global cues?
Strong HCLTech earnings, easing crude prices, excitement over the upcoming Jio Platforms IPO, and the view that the global AI-stock correction could slow foreign selling of Indian equities.
When does the Jio Platforms IPO open?
The Jio IPO opens October 21 to 23, with the anchor book opening October 19. Priced at Rs 1,065 to Rs 1,119 a share, it aims to raise Rs 30,213 crore, making it India’s largest IPO.
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