SENSEX surges over 650 points, NIFTY50 above 22,500; Here are key things to know

The Indian equity benchmarks were trading firmly higher in noon deals on Tuesday, October 12, as sentiment turned positive as rupee strengthened against the US dollar and the International Monetary Fund (IMF) raised India's economic growth forecast to 7% for 2026. The SENSEX rose as much as 696 points and NIFTY50 index touched an intraday high of 22,581.

IMF upgrades India’s growth forecast

The benchmarks moved higher after sentiment turned positive after the global financial institution IMF raised its growth forecast for India to 7% for 2026, citing stronger-than-expected economic momentum, resilient domestic demand and robust services activity.

In its October 2026 World Economic Outlook, the IMF said India remained among the fastest-growing major economies, with activity holding up despite higher oil prices and global economic uncertainty.

The latest projection reflects stronger-than-expected momentum in the Indian economy, supported by domestic demand and the services sector, the report said.

Rupee appreciated against US dollar

The sentiment also got a boost from strengthening rupee against the US dollar. The rupee appreciated 82 paise to 94.96 against US dollar supported by various RBI measures aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange market.

The RBI on Saturday tightened rules governing forex derivatives trades to curtail speculative bets against the rupee and asked banks to create a 20% reserve for dollar purchases of over $2 million.

In another set of measures announced on Saturday on the derivatives front, the RBI said authorised dealers (AD) should not permit users to rebook any foreign exchange derivative contract involving the INR, whether deliverable or non-deliverable, which has been cancelled.

IT shares surge supported by strong AI revenues

IT shares were witnessing a strong buying interest after HCL Tech reported in-line numbers in the second quarter of current financial year.

The company posted a 10.94% quarter-on-quarter (QoQ) jump in its consolidated net profit (attributable to the owners of the company) to ₹5,132 crore during the quarter under review, compared with ₹4,626 crore in the first quarter of FY27 (Q1 FY27).

Annually, the firm’s profit rose 21.18% year-on-year (YoY) from ₹4,235 crore in the second quarter of the 2025-26 fiscal year (Q2 FY26).

The company recorded advanced artificial intelligence (AI) revenue of $219 million, in CC terms, marking a 28.4% QoQ and 78% YoY growth.

Sentiment also turned positive for IT shares after Broadcom CEO Hock Tan said many AI investors are behaving like casino gamblers, betting on something they have very little understanding of.

The comments triggered a massive selloff in Korean market with KOSPI index closing 5.46% lower.

IT bellwethers rally

TCS, Infosys, HDFC Bank, HCL Technologies, ICICI Bank, Hindustan Unilever, Tech Mahindra, Bharti Airtel and Bajaj Finance were top movers in the SENSEX they collectively contributed over 450 points towards gain in the SENSEX.

Sectoral landscape

10 of 15 sector gauges compiled by the National Stock Exchange (NSE) were trading higher led by the NIFTY IT index's over 4% gain. FMCG, realty, auto, banking and financial services shares were also witnessing buying interest.

On the other hand, pharma, healthcare, metal, media and oil & gas shares were witnessing buying interest.

Broader markets were underperforming their larger peers as NIFTY Midcap 100 index declined 0.1% while NIFTY Smallcap 100 index dropped 1%.

The overall market breadth was negative as 2,028 shares declining while 1,396 were advancing on the NSE.