Indian equity markets opened marginally higher on Tuesday following U.S. President Donald Trump's hints at a possible nuclear agreement with Iran. According to reports from LiveMint, the Nifty 50 advanced 0.11% to 23,675.3, while the BSE Sensex gained 0.17% to 75,441.27 in early trade. Market breadth remained positive with 14 of the 16 major sectoral indices opening in the green. The broader market also showed buying interest, with midcap and smallcap indices rising around 0.3% each. However, the Nifty IT index jumped more than 4% to hover near 29,566 on Tuesday morning, demonstrating strong momentum in the technology sector. As per The Economic Times, markets continue to receive support from strong domestic liquidity, particularly sustained mutual fund inflows, though analysts question whether current valuations are justified by underlying fundamentals.
The Nifty IT index extended its winning streak for the third consecutive session on Tuesday, rising 4% to hit an intraday high of 29,559.85. As of 11 AM, the index was the top-performing sectoral index, trading higher by 1,115 points, or 3.9% at 29,507. All 10 constituent stocks were trading firmly in the green, with Coforge and Mphasis leading gains, rising over 5% each to ₹1,428 and ₹2,262, respectively. Tech Mahindra advanced 4.8% to ₹1,499, followed by Oracle Financial Services Software (OFSS) at ₹9,837, Persistent Systems at ₹5,168, LTIMindtree at ₹4,263, and Infosys at ₹1,191 - all gaining more than 4%. Other constituents, Tata Consultancy Services (TCS), Wipro, and HCLTech, gained around 3% to trade at ₹2,354, ₹197.50, and ₹1,174, respectively. Coforge, LTI Mindtree, HCL Technologies, Mphasis, Persistent Systems and Tech Mahindra shares jumped around 4% each on Tuesday, while OFSS and Tata Consultancy Services (TCS) shares surged more than 3% each.
Sandip Agarwal, Fund Manager at Sowilo Investment Managers which manages assets worth nearly $20.44 million as of April 30, 2026, makes a case for Indian IT stocks despite global uncertainty. According to CNBC TV18, Agarwal points to rupee weakness, a 40-50% valuation correction, and the early stages of an AI-driven services cycle as key reasons to buy. He expects 75% earnings growth over three years and favours large and midcap traditional IT services over expensive ER&D names. The fund manager's positive outlook comes despite global headwinds, with his investment thesis centered on India's positioning in the AI services cycle and the potential for significant valuation corrections.
While the Nifty IT Index has now gained more than 8% (over 2,205 points) in just three sessions, analysts remain cautious about current market valuations. Sameer Dalal from Natverlal & Sons Stockbrokers noted that recent short covering has helped the market rebound from lower levels, yet the broader concern remains whether indices are trading above fair value given growth and inflation expectations. He emphasized that while liquidity will always provide a floor to markets, that does not necessarily mean valuations are appropriate at current levels. According to The Economic Times, Dalal remains cautious on the overall market construct, arguing that earnings visibility for FY27 looks weak and could weigh on sentiment. He stated that although markets are forward-looking and often discount FY28 recovery scenarios, uncertainty over global and domestic developments makes those assumptions fragile, with unpredictability in global leadership and policy direction potentially altering growth expectations.
As reported by LiveMint, Nifty 50 ended marginally flat after a 300-point intraday recovery from lows on Monday. According to Sagar Doshi, Senior Vice President- Research at Nuvama Professional Clients Group, the index has been highlighting 23,760 as a crucial level to watch on the upside for the past 4 trading days. However, continuing its failure to reclaim this level, the index has slid back down to 23,400/23,150. On a week-to-week basis, Nifty 50 lost -2.2% in trade largely due to the rupee hitting record lows and losing over -1% in the same time period. The Nifty IT Index has now gained more than 8% (over 2,205 points) in just three sessions, demonstrating significant momentum in the technology sector. Bajaj Finserv AMC CIO Nimesh Chandan projects that the Nifty 50 is positioned to break to a new all-time high once geopolitical uncertainty clears, with the fair value for the index currently at 27,000.
