Why is market rising today? Sensex jumps 650 points, Nifty above 22,550. 4 key factors behind D-Street rebound

Indian equity benchmarks Sensex and Nifty staged a sharp rebound on Tuesday, recovering from early losses as a rally in IT heavyweights lifted sentiment. The recovery came despite mixed broader-market cues and lingering caution on Nifty’s expiry day.

The Sensex jumped over 650 points to 72,541, while the Nifty climbed nearly 200 points to trade above 22,550 around 10:00 AM. At the market opening, Sensex had declined over 150 points, but quickly recovered the losses to trade in the green.

Broader markets remained mixed, with the Nifty Midcap 100 trading in the green while the Nifty Smallcap 100 slipped into negative territory.

IT stocks were the top gainers on Sensex. HCL Tech shares rallied more than 5% after its Q2 results, while heavyweight peer TCS also jumped around 5%. Tech Mahindra and Infosys shares rose around 3% each.

Shares of Trent, Eternal, HDFC Bank, Hindustan Unilever, Bajaj Finserv, ITC, SBI, M&M, Tata Steel, Adani Ports, Bajaj Finance and Bharti Airtel gained up to 2%. Bucking the trend, NTPC shares fell nearly 1% to lead losses on Sensex.

Among the sectors, Nifty IT rallied more than 3% to lead gains, while Nifty FMCG, Nifty Realty and few other sectoral indices gained around 1% each. Nifty Pharma however slipped into the red. The market breadth however remained negative, with NSE seeing 1,638 declines against 1,400 advances while 111 stocks remained unchanged.

Here are the key factors pushing the market up today:

The sharp rally in heavyweight IT stocks is pushing the markets higher up today, despite existing headwinds. This comes as the overall downtrend in global AI stocks uplifted sentiment for India’s much-touted tech giants, which have been seen as the so-called ‘anti-AI’ trade.

South Korea’s Kospi, seen as the face of the frenzy around artificial intelligence, crashed more than 6%, while Japan’s Nikkei was down more than 2%. This came while heavyweight tech stocks like Samsung and others crashed amid rising worries around the excessive optimism around the nascent technology, with analysts warning of a bubble.