Sensex settles 200 pts higher, Nifty ends above 25,750: Buying in IT shares among key factors behind market rise

Stock market today news: Sensex, Nifty see profit booking in trade.

• Sensex and Nifty recovered early losses to trade in the green.
• IT shares like Infosys and ITC led the market rebound.
• India VIX fell over 2 percent, signaling lower market volatility.

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The benchmark equity indices Sensex and Nifty settled higher for the second straight session on Tuesday, driven by gains in bank, IT and capital goods shares.

The Sensex climbed 173.81 points, or 0.21 percent, to close at 83,450.96. The index moved between a high of 83,598 and a low of 82,987.43 during the day. The Nifty advanced 42.65 points, or 0.17 percent, to settle at 25,725.40.

Infosys, ITC, HCL Technologies, Asian Paints, Tech Mahindra, Bharat Electronics Ltd, Tata Consultancy Services, IndiGo, Sun Pharmaceuticals, and Larsen & Toubro were the major gainers in the Sensex pack.

On the other hand, Eternal, Tata Steel, ICICI Bank, Bajaj Finserv, Kotak Mahindra Bank, Reliance Industries, UltraTech Cement, Bajaj Finance, Axis Bank, and Mahindra & Mahindra were the laggards.

Broader indices also traded firm, with the BSE Smallcap Select Index rising 0.49 percent, and Midcap Select Index gained 0.26 percent.

Key factors behind market rise

1) Buying in IT shares: Shares of IT companies extended gains for the second straight session after witnessing a sharp decline earlier. Heavyweight Infosys announced a strategic partnership with Anthropic, at a time when concerns around AI-led disruption in the sector had weighed on sentiment.

2) India Vix declines: The India VIX, the volatility gauge, declined over 2 percent to 13.02. A fall in the index indicates easing market volatility and improves investor risk appetite.

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3) Rupee rises: The rupee appreciated 1 paisa to 90.73 against the US dollar in early trade, supported by lower global crude oil prices. However, a stronger dollar overseas and foreign institutional investor outflows limited the gains, according to forex traders. At the interbank foreign exchange, the domestic unit opened at 90.72 against the US dollar and slipped to 90.73, up 1 paisa from its previous close.

4) Crude rises: Brent crude, the global oil benchmark, slipped 0.41 percent to USD 68.37 per barrel. Lower crude prices are positive for India, which imports a major portion of its oil requirements.

Technical view

Anand James, Chief Market Strategist at Geojit Investments Limited, said buyers may appear cautious in early trade following Monday’s sharp rise towards the 25,690–25,750 zone.

He said the bullish engulfing candlestick pattern on the charts supports the possibility of further upside, though dips towards the 25,620–25,570 range could attract buying.

On the upside, the 25,750 level may act as a hurdle, while 25,900 appears achievable, he added.

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