Indian Shares Rise as IT Stocks Lift Markets
Indian equities advanced on October 13, supported by strong IT earnings and RBI measures to support the rupee, while rising inflation and elevated crude oil prices continued to raise concerns about further interest rate hikes.
The Nifty 50 and BSE Sensex gained around 0.9% during early trading, supported by strong performance from major technology companies. HCLTech shares climbed 5.4% after the company reported better-than-expected quarterly profit, while Tata Consultancy Services (TCS) also advanced 5.4%. The Nifty IT index rose 3.4%.
Investor concerns persisted following India's retail inflation increase to 5.54% in September, up from 4.83% in August. The latest reading approached the Reserve Bank of India's upper tolerance limit of 6%, strengthening expectations of further monetary tightening.
Higher crude oil prices and geopolitical tensions in the Middle East continued to weigh on market sentiment. Brent crude remained around $105 per barrel amid concerns about supply disruptions and attacks affecting regional energy infrastructure.
Foreign investors also continued to withdraw funds from Indian equities. Provisional data showed net foreign selling of ₹17,080 crore on Monday, marking the 12th consecutive trading session of outflows. Foreign investors had sold approximately $4.9 billion worth of Indian shares during October, the largest monthly sell-off since June.
The Reserve Bank of India has introduced additional foreign-exchange measures to support the rupee, including tighter rules for certain currency derivatives. These steps have helped improve sentiment towards the currency, although sustained oil prices and capital outflows remain significant risks.
Market performance remained uneven across sectors. While IT shares benefited from earnings optimism, small-cap stocks faced pressure amid broader uncertainty over global markets and domestic interest rates.
Investors are expected to continue monitoring corporate earnings, crude oil prices, inflation trends and foreign investment flows for direction in the coming sessions.