Indian Equities Rebound Sharply, Sensex Surges Over 1,100 Points Led by IT Sector Gains
The strong recovery on Tuesday was fueled by IT and financial stocks, though rising crude oil prices and persistent foreign institutional selling continue to temper broader market sentiment.
The story
Indian equity benchmarks staged a significant rebound on Tuesday, October 13, with the Sensex surging 1,109.10 points, or 1.54%, to close at 73,033.78. The Nifty 50 also rallied, gaining 358.60 points, or 1.60%, to settle at 22,721.95. [5, 11, 13, 16] This marked the strongest single-day gain for the Sensex in four months and for the Nifty in over two months. [5, 11]
The rally was predominantly driven by the Information Technology (IT) sector, with the Nifty IT index rising approximately 5.2%. [2] Major IT companies saw substantial gains, including HCL Technologies climbing over 5% following its second-quarter results, TCS advancing around 5%, and Infosys and Tech Mahindra each rising by roughly 3-4%. [9, 10, 16] Comments from Finance Minister Nirmala Sitharaman regarding long-term capital gains (LTCG) tax and securities transaction tax also contributed to positive investor sentiment. [5, 16]
Despite the market's strong performance, foreign institutional investors (FIIs) remained net sellers for the thirteenth consecutive session on October 13, offloading equities worth ₹1,305.13 crore. [8, 10, 20, 23, 26, 28] Domestic institutional investors (DIIs) continued to provide crucial support, purchasing equities worth ₹2,439.24 crore on the same day. [8, 10, 20, 23, 26, 28] Concerns over rising crude oil prices, with Brent crude nearing $106.58 per barrel, and broader global market uncertainties continue to influence investor outlook. [10]
The tape
| Instrument | Last | Change |
|---|---|---|
| Nifty 50 | 22,721.95 | +358.60 (+1.60%) |
| Sensex | 73,033.78 | +1,109.10 (+1.54%) |
| India VIX | 14.12 | -1.13 (-7.4%) |
| USD/INR | 95.04 | -0.25 |
| India 10Y yield | 7.3886% | +0.0231 (+2.31 bps) |
Flows & data
FII Net Flows
Reading: -₹1,305.13 crore (Oct 13, 2026)
Read: Foreign institutional investors continued to be net sellers in the cash market.
DII Net Flows
Reading: +₹2,439.24 crore (Oct 13, 2026)
Read: Domestic institutional investors provided significant buying support to the market.
IPOs & the primary market
India's primary market remains active, with several issues open for subscription. The mainboard IPO for Fusion CX, an IT services company, opened on October 14, seeking to raise ₹702 crore with a price band of ₹275–₹289 per share. [14, 15] HD Fire Protect's mainboard IPO, open from October 13-15, has a price band of ₹258–₹271, and its Grey Market Premium (GMP) was reported at +₹90, or +33%, as of October 14. [15, 19, 21] Meanwhile, Ravita Engineering Services' SME IPO, also open this week, has an issue size of ₹116.05 crore. [14, 15] A significant development is the expected filing of the Red Herring Prospectus (RHP) by Jio Platforms Ltd on October 14 for a record ₹30,000 crore IPO. [7] The grey market for Jio Platforms indicated a GMP of +₹182 (+16.20%) as of October 13. [17]
Valuation watch — India & global
While specific Nifty PE ratios for the current period were not immediately available, the broader market sentiment continues to grapple with valuation concerns amidst global froth. The strong rebound in Indian equities on Tuesday, particularly in the IT sector, arrives against a backdrop of rising crude oil prices and persistent foreign institutional outflows, which typically pressure valuations.
Globally, signals of potential excess can be seen in the grey market premiums (GMP) of upcoming IPOs, such as Tonbo Imaging India, which recorded a GMP of +₹500, or +71% over its price band, as of October 14. [19] This level of informal premium often points to speculative interest in the primary market. US stock futures traded lower on Wednesday, and the US 10-year Treasury yield stood at 5.22%, indicating a cautious global environment that could influence India's valuation multiples.
What we'll be watching
- Jio Platforms Ltd is expected to file its Red Herring Prospectus (RHP) for a ₹30,000 crore IPO on October 14. [7]
- US inflation data is anticipated later on October 14, which could influence global market sentiment. [20]
- The mainboard IPO for Zetwerk is scheduled to open for subscription from October 15 to October 19. [15, 21]
- HD Fire Protect's mainboard IPO closes on October 15. [15, 19, 21]
- Fusion CX's mainboard IPO closes on October 16. [15]
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