By Vivek Kumar M and Bharath Rajeswaran
(Reuters) -India’s benchmark indexes rose on Tuesday, led by gains in heavyweight information technology and financials, amid foreign capital inflows and easing tariff concerns.
The NSE Nifty 50 was up 0.56% at 23,790.2 as of 10:33 a.m. IST, while the BSE Sensex gained 0.60% to 78,444.19.
“With the recent correction, Nifty 50 is trading at 17.8x one-year forward earnings. This is a discount to its 5-year and 10-year median, offering value opportunities for investors,” said Sweta Jain, research analyst at Anand Rathi Share and Stock Brokers.
While both the benchmarks have erased their year-to-date losses, they are still down 9.4% and 8.6%, respectively, from all-time highs hit in late-September.
Foreign investors, who have been persistent sellers since the market’s peak, have bought shares worth 137.65 billion rupees ($1.61 billion) in the last three sessions.
IT and financials, which have higher foreign investor holdings, led gains on Tuesday.
The IT index was the top sectoral winner, jumping over 2%, after U.S. President Donald Trump said he might give a “lot of countries” breaks on tariffs.
Trump’s tariffs are expected to be inflationary in the U.S. and do not bode well for IT firms as they derive a substantial portion of their revenue from there.
The U.S. treasury secretary said countries can avoid reciprocal tariffs by cutting trade barriers.
Indian financials added 0.4% on Tuesday after the central bank issued revised guidelines on priority sector lending, broadening the criteria for renewable energy and enhancing loan limits for housing.
Indian Renewable Energy Development Agency (IREDA) advanced 3%, while HDFC Bank jumped 1%, with Citi and Jefferies calling it a beneficiary of the revised PSL guidelines.
Ultratech Cement rose 3%, while ACC and Ambuja Cements gained 1% and 1.5%, respectively, after UBS called an end of rough patch on likely demand rebound for the cement sector in fiscal year 2026.
The broader, more domestically focussed smallcaps were down 0.5%, while the midcaps traded flat.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala and Sonia Cheema)
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