Indian Shares Rebound as Tech Stocks Rally Despite Inflation Concerns

India's BSE Sensex benchmark index climbed roughly 0.9% to reach 72,567 on Tuesday, recovering from losses in the prior trading session. Strong performance across the technology sector drove the market's recovery, with major IT firms recording solid advances. Tata Consultancy Services gained 4.4%, HCL Tech rose 3.9%, Infosys added 1.7%, and Persistent Systems climbed 1.0%. HCL Tech reported a 21.2% rise in second-quarter net profit, helping boost sentiment across the sector.

Despite the session's gains, market participants remained cautious amid macroeconomic headwinds. Retail inflation in India climbed to 5.54% in September, creeping closer to the Reserve Bank of India's 6% upper tolerance limit. Additionally, sustained high crude oil prices present ongoing risks to national import costs, inflation trends, and overall corporate profitability. Meanwhile, the Indian rupee strengthened to 95.77 against the US dollar on Monday following currency stabilization measures introduced by the central bank.

Investors will closely monitor how persistent inflationary pressures influence upcoming monetary policy decisions. Market focus will also center on corporate revenue forecasts, particularly as technology firms assess potential impacts from artificial intelligence disruption and broader geopolitical uncertainties.