Sensex Surges Over 500 Points, Nifty Crosses 22,750 as IT Stocks Drive Early Market Gains

Stock Market Today: Sensex Rallies Over 500 Points, Nifty Crosses 22,750 as IT Stocks Shine Amid Asian Market Rout

Indian equity markets opened higher on Thursday, October 15, with benchmark indices extending their gains as information technology and private banking stocks attracted strong buying. The domestic rally came despite a sharp sell-off in Asian markets, where technology shares tumbled following hotter-than-expected US inflation data. However, losses in public sector banks and broader market indices kept investor sentiment cautious.

At 9:33 am, the BSE Sensex was trading at 73,306.32, gaining 524.43 points, or 0.72%. The NSE Nifty 50 rose 136.60 points, or 0.60%, to 22,759.30.

The Nifty IT index emerged as a key driver of the rally, climbing 1.51% to 30,627.50. The Nifty Private Bank index advanced 1.01%, while the Nifty Financial Services index added 0.57%. The Nifty FMCG index gained 0.44%, the Nifty Auto index rose 0.29%, and the Nifty Bank index edged up 0.25%.

Tech Mahindra, TCS and Infosys Lead Sensex Gainers

Technology shares recorded strong gains in early trading. Tech Mahindra topped the Sensex gainers, rising 2.93%, while Tata Consultancy Services (TCS) advanced 2.30% and Infosys climbed 1.91%. Bharti Airtel gained 1.61%.

Banking stocks also contributed to the positive momentum, with ICICI Bank rising 1.55% and Axis Bank gaining 1.25%. ITC advanced 1.01%, while HDFC Bank was up 0.98%. IndusInd Bank, HCL Technologies and Bajaj Finance were among the other stocks trading in positive territory.

The strength in IT shares followed the latest results from HCL Technologies, which helped support optimism around the sector’s earnings outlook.

PSU Banks, Metals and Media Shares Under Pressure

Not all sectors participated in the market rally. Public sector banking stocks witnessed notable selling, with the Nifty PSU Bank index falling 2.18%, making it the weakest-performing sectoral index during early trade.

The Nifty Metal index declined 0.91%, while the Nifty Media index slipped 0.71%. The Nifty Oil & Gas index was also trading lower, down 0.35%.

Bharat Electronics, Titan, Adani Ports, State Bank of India, Trent and Power Grid featured among the notable laggards.

Broader Markets Remain Weak

The gains in the benchmark indices failed to translate into a broader market recovery. Small-cap and mid-cap stocks remained under pressure, reflecting selective buying rather than a market-wide rally.

The Nifty Smallcap 100 fell 0.86%, while the Nifty Smallcap 50 dropped 0.75%. The Nifty Microcap 250 declined 0.76%, and the Nifty Smallcap 500 lost 0.63%.

The Nifty Next 50 was down 0.87%, while the Nifty Midcap 100 slipped 0.19%. The Nifty Midcap Select index edged lower by 0.10%.

Meanwhile, the India VIX, a gauge of expected market volatility, rose 0.73% to 14.73 from its previous close of 14.63, indicating a slight increase in uncertainty among investors.

US Inflation Concerns Trigger Global Technology Sell-Off

V K Vijayakumar, chief investment strategist at Geojit Investments, said stronger-than-expected US inflation had raised concerns about the possibility of another interest rate increase by the Federal Reserve.

According to Vijayakumar, US inflation rose from 3.4% in August to 3.7% in September, increasing worries about the Fed’s next policy move. These concerns contributed to heavy selling on Wall Street, with the technology-focused Nasdaq Composite falling 1.88%, according to his assessment.

AI-related stocks faced particularly strong selling pressure, with the weakness spreading to Asian markets on Thursday. Japan’s Nikkei and South Korea’s Kospi registered steep losses as investors reassessed valuations in the technology and artificial intelligence sectors.

Vijayakumar said the correction in AI stocks could prove favourable for Indian equities. Foreign institutional investors (FIIs), who have been selling Indian shares while investing in AI-related stocks, could slow those outflows or potentially reverse the trend if conditions improve.

He also pointed to the possibility of a review of long-term capital gains (LTCG) taxation in the upcoming Union Budget as a factor that could support market resilience. Expectations of healthy second-quarter results from financial companies may also help sustain sentiment, he added.

Asian Markets Plunge as AI Stock Sell-Off Intensifies

Asian equities came under heavy pressure on Thursday following losses on Wall Street, where hotter-than-expected inflation data intensified concerns over US interest rates and technology stock valuations. US equity futures also traded lower.

South Korea’s Kospi plunged 7.7% to 5,548.78, moving sharply below the record levels it reached earlier amid enthusiasm for artificial intelligence. Samsung Electronics shares slumped 9.5%, while chipmaker SK Hynix tumbled 11.4%.

Japan’s Nikkei 225 dropped 4.8% to 64,489.06. SoftBank Group, an investor in OpenAI, fell 9.4%. Tokyo Electron declined 7.3%, while memory chipmaker Kioxia Holdings lost 11.2%.

Taiwan’s Taiex shed 3%, with Taiwan Semiconductor Manufacturing Company (TSMC) falling 2.2% ahead of its earnings announcement. Hong Kong’s Hang Seng Index declined 1% to 24,071.25, while the Shanghai Composite slipped 1.4% to 3,713.22.

Australia’s S&P/ASX 200 was comparatively resilient, edging down 0.1% to 8,715.60.

Wall Street Ends Lower; Nvidia and AMD Fall

The sell-off across Asian markets followed a weak session on Wall Street on Wednesday. The S&P 500 declined 1.1%, while the Dow Jones Industrial Average slipped 0.1%. The Nasdaq Composite fell 1.9% as investors sold technology and AI-linked stocks.

Nvidia shares dropped 3.2%, Broadcom lost 3.1%, and Advanced Micro Devices (AMD) declined 5.7%.

With global investors monitoring inflation, interest-rate expectations and technology valuations, Indian markets are likely to remain sensitive to overseas cues. For now, gains in IT and private banking shares are supporting the benchmarks, even as weakness in smaller companies and public sector banks highlights the cautious mood across the broader market.