SENSEX zooms over 1,246 points, NIFTY50 tops 22,983 amid global market rout; here is why

Indian equity market indices, NIFTY50 and SENSEX, rallied during the trading session on Thursday, October 15, defying the global market jitters around AI stocks as investors focused on the domestic IT sector multi-day rally, a constructive outlook for the Indian economy, among several other key factors.

NSE data showed that the NIFTY50 index rallied 1.6% or 360 pts to touch an intraday high of 22,983.35 points on Thursday’s market, in comparison to 22,622.70 points at the previous equity market close.

The BSE SENSEX surged 1.7% or 1,246.81 points to touch an intraday high of 74,028.70 during the trading session on October 15, compared to 72,781.80 points at the previous stock market close.

Experts predict that investors have become more open to non-AI stories, as India offers diversification and valuation opportunities which have become more reasonable amid the global market rout.

5 key factors powering market momentum today

IT stocks multi-day rally

NSE data showed that IT stocks have gained nearly 11% in the last five trading sessions, as equity investors focus on the healthy quarterly earnings performance so far in the Q2 results season for FY27 amid strong revenues and growth outlook from AI operations.

The resilient Q2 performance from Indian IT companies has emerged as a major momentum cue for the broader equity market indices, with key focus on services growth, strong margins, and AI revenue momentum.

Heavyweight IT stocks like Tech Mahindra, TCS, HCL Tech, and Infosys, along with others like Reliance, Bharti Airtel, and ICICI Bank, among others were powering the NIFTY50’s rally on Oct. 15.

On Thursday’s market, the sector benchmark Nifty IT index rallied 2.8% to hit an intraday high of 31,038.15 points, in comparison to 30,171 points at the previous equity market close levels.

The IT stocks rally on October 15 marks the third consecutive day of the surge, with strong buying cues from investors. IT majors TCS and HCL Tech have released their September quarter earnings, which have surpassed market expectations.

Attractive valuations

Market experts predict that the Indian equity market is offering attractive valuations to investors amid the global market sell-off, emerging as a key factor in why the benchmark indices are rallying in Thursday’s market.

“Investors are more open to non-AI stories. India offers diversification, and valuations have become more reasonable,” said HSBC analysts. “Valuations look more reasonable, with the Nifty 50 trading at 16x forward PE – a level reached only twice in the past decade,” they said.

However, the macroeconomic headwinds remain a key concern in the Indian markets as inflation is expected to hit the 6% level in the third quarter of FY27, as per RBI’s latest estimates.

“Higher bond yields and elevated oil prices continue to limit foreign investor enthusiasm,” said the experts.

Buying cues

The International Monetary Fund (IMF) raised its India growth forecast this week to 7% for the year 2026, citing stronger-than-expected economic momentum, resilient domestic demand and robust services activity, which led to an uplift in the overall sentiment among investors.

This comes at a time when the Asian market indices crashed on Thursday due to the massive sell-off in AI-related stocks as investors book profits, prompted by the stronger-than-expected inflation numbers for the US economy.

The inflation data overheated sectors and themes like AI, data centres and chip making, leading to a lower Wall Street close after Wednesday’s market.

Rupee support

The recent strength in the Indian rupee has also added to the overall sentiment in the equity markets, as the domestic currency was gaining against the benchmark US dollar, with the RBI easing the pressure on the spot market with its ‘special window’ for public sector oil marketing companies to purchase US dollars directly from the central bank.

As of 12:43 pm (IST), the Indian rupee was trading 0.13% stronger at 95.01 per US dollar on Thursday’s market, in comparison to 95.14 per US dollar at the previous market close levels, according to data collected from TradingView.

RBI’s move has lifted the US dollar buying pressure from the spot market as PSU oil refining companies now buy from the central bank, in turn supporting the Rupee rates.

JIO IPO momentum

The company has fixed the price band for the offering at the range of ₹1,065 to ₹1,119 apiece per lot, with a lot size of 12 equity shares and in multiples thereafter.

The anchor round for the IPO will take place on Monday, October 19. JIO plans to issue fresh equity shares of up to 27 crore with a face value of ₹10 apiece. The proceeds will be used for debt clearance of the material subsidiary, Reliance Jio Infocomm (RJIL), and general corporate purposes.