India’s BSE Sensex climbed 0.9% to 72,567 on Tuesday, rebounding from the previous session’s losses and driven largely by strength in technology shares. Investor sentiment, however, remained cautious amid persistent inflation concerns, elevated crude oil prices, and ongoing geopolitical uncertainty.
India’s retail inflation rose to 5.54% in September, edging closer to the Reserve Bank of India’s 6% upper tolerance band and intensifying speculation about the central bank’s policy trajectory. Higher oil prices continue to threaten India’s import bill, inflation outlook, and corporate profit margins.
In currency markets, the rupee firmed to 95.77 per US dollar on Monday after the RBI introduced measures aimed at easing pressures in the foreign exchange market.
On the corporate front, HCL Tech reported a 21.2% year-on-year increase in Q2 net profit but issued a cautious outlook for full-year revenue growth, citing disruption from artificial intelligence and heightened geopolitical risks. Among technology names, HCL Tech gained 3.9%, TCS advanced 4.4%, Infosys rose 1.7%, and Persistent Systems added 1.0%.
