16 January 2026 Punjab Khabarnama Bureau : Indian equity markets witnessed a powerful rebound on Tuesday, with benchmark indices posting sharp gains driven by strong buying interest in information technology stocks, upbeat global cues, and renewed investor confidence. The BSE Sensex surged nearly 750 points, while the NSE Nifty climbed close to 1%, marking one of the strongest single-session performances in recent days.
The rally was led by heavyweight IT stocks, with Infosys emerging as the top performer among large-cap shares. The stock witnessed strong buying momentum throughout the session, supported by optimism around its growth outlook, improving deal pipeline, and expectations of higher technology spending from global clients. Other IT majors including TCS, Wipro, HCL Technologies, and Tech Mahindra also traded firmly in the green, pushing the Nifty IT index significantly higher.
Market analysts attributed the surge to a combination of positive domestic and global factors. One of the key drivers was improving sentiment in global equity markets, especially in Asia, after signs of easing inflationary pressures and hopes that major central banks may adopt a more accommodative stance on interest rates going forward. Investors took comfort in expectations that aggressive rate hikes could be nearing an end, which typically supports risk assets such as equities.
Another major factor supporting Indian markets was the return of select foreign institutional investor (FII) buying. After a phase of cautious positioning, overseas investors appeared to selectively re-enter quality large-cap stocks, particularly in the IT and banking sectors. Domestic institutional investors (DIIs) also continued to provide steady support, cushioning markets against volatility.
Banking and financial stocks further contributed to the rally. Heavyweights such as HDFC Bank, ICICI Bank, State Bank of India, and Axis Bank witnessed healthy gains, helping maintain momentum in the frontline indices. Analysts believe that the strong fundamentals of Indian banks, improving asset quality, and stable credit growth prospects continue to make the sector attractive for long-term investors.
Market sentiment was also boosted by expectations around strong corporate earnings in select sectors. Investors are positioning themselves ahead of quarterly results from major companies, hoping that resilient demand conditions and cost control measures will reflect positively on profitability. Sectors such as IT, banking, capital goods, and infrastructure are particularly in focus.
On the broader market front, mid-cap and small-cap stocks also participated in the rally, indicating that the positive sentiment was not limited to blue-chip shares alone. Several stocks in the broader market saw strong buying interest, reflecting healthy participation from retail investors.
Technical analysts pointed out that the Nifty managed to reclaim important resistance levels during the session, which further strengthened short-term market sentiment. A sustained move above key levels could potentially open the door for further upside in the coming sessions, provided global cues remain supportive.
However, experts also cautioned that volatility is likely to persist. Geopolitical tensions, fluctuations in crude oil prices, and uncertainty around global economic growth continue to pose risks to market stability. Investors are advised to remain selective in their approach and focus on fundamentally strong stocks rather than chasing momentum.
The Indian rupee also showed signs of stability, which added comfort to market participants. A stable currency typically supports foreign inflows and reduces concerns around imported inflation.
Overall, the session reflected a renewed sense of optimism on Dalal Street. The combination of strong performance by IT stocks, supportive global signals, and steady institutional participation helped markets log a broad-based rally. While short-term corrections cannot be ruled out, analysts believe the medium-term outlook for Indian equities remains constructive, supported by robust economic fundamentals and strong corporate balance sheets.
As markets move ahead, investor focus will remain on upcoming earnings announcements, macroeconomic data releases, global market trends, and central bank commentary. These factors are expected to shape market direction in the days to come.
Summary
Indian stock markets rallied sharply as Sensex rose 750 points and Nifty gained nearly 1%, driven by an IT-led surge, strong Infosys performance, positive global cues, and renewed investor optimism.