Indian stock market indices experienced a sharp upward movement during Tuesday's afternoon trading session. The benchmark Sensex climbed more than 1,100 points to reach an intraday high, while the Nifty advanced by over 350 points. This market reaction followed statements made by Finance Minister Nirmala Sitharaman regarding taxation policies affecting investors.
Speaking at the Bloomberg New Economy Forum, the finance minister addressed ongoing discussions concerning the long-term capital gains tax and the securities transaction tax. She noted that domestic and international investors have actively commented on these levies. Market participants interpreted her remarks as an indication that the government acknowledges prevailing investor concerns surrounding taxation and transaction costs.
Technology shares contributed significantly to the daily market gains. The Nifty IT index increased by 5%, driven by a jump of 8% in HCL Tech shares following positive quarterly financial results and profitability metrics. Tata Consultancy Services advanced by 6%, building on earnings reported during the previous week.
Despite the positive movement in large-cap technology counters, overall market conditions reflected mixed sentiment. Fourteen out of sixteen major sectoral indices traded in positive territory, but small-cap stocks declined by 0.7% following a previous session gain of 1.4%. Mid-cap shares registered a modest increase of 0.4% as participants favoured established large-cap equities.
Various external factors continued to influence market dynamics and investor caution. Retail inflation increased beyond expectations to 5.54% in September, prompting attention toward the monetary policy path of the Reserve Bank of India. Additionally, Brent crude futures sustained levels above $100 per barrel, maintaining pressure on inflation worries alongside the effects of a weak monsoon.
Developments in global markets also entered the picture following reports of technological advancements by Chinese chipmaker ChangXin Memory Technologies. This development coincided with a 6% drop in South Korea's Kospi index and a decline of more than 2% for Asian shares outside Japan. Meanwhile, the Nifty IT index remains down 23% year-to-date despite recent quarterly earnings improvements.
Key numbers
- Sensex rise: 1,100 points
- Nifty rise: 350 points
- Nifty IT index rise: 5%
- HCL Tech jump: 8%
- September retail inflation: 5.54%
What a board might note
- How might the stated September retail inflation figure of 5.54% influence corporate borrowing costs and upcoming monetary policy decisions by the Reserve Bank of India?
- What considerations should treasury teams apply regarding Brent crude futures remaining above $100 per barrel and its potential impact on operating margins?
- How does the 23% year-to-date decline in the Nifty IT index align with internal forecasts for software service demand and artificial intelligence adoption risks?
Source: Economic Times Markets, 13 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
