Markets extend recovery as Adani stocks lead rally; HCL Tech tumbles 

Indian equity markets maintained their upward momentum in Tuesday’s mid-day trading, with the benchmark Sensex rising 242.04 points or 0.32 per cent to 76,572.05, building on earlier gains fuelled by softer inflation data. The broader Nifty added 84.30 points or 0.37 per cent to trade at 23,170.25 at 12.30 pm.

Adani Group stocks emerged as the top performers, with Adani Enterprises surging 7.61 per cent and Adani Ports advancing 5.56 per cent. Other major gainers included NTPC, which rose 4.38 per cent, followed by Hindalco and Bajaj Finance, adding 3.71 per cent and 3.17 per cent respectively.

The IT sector faced significant selling pressure, with HCL Technologies dropping 8.22 per cent despite reporting strong quarterly results. Other notable declines came from Hindustan Unilever, down 2.35 per cent, Apollo Hospitals falling 1.70 per cent, Titan shedding 1.66 per cent, and Reliance Industries declining 0.88 per cent.

Broader market indicators showed positive sentiment, with the Nifty Next 50 jumping 2.18 per cent to 62,822.70 and the Nifty Midcap Select gaining 1.33 per cent to reach 11,970.60. The banking and financial services sectors also demonstrated strength, with the Nifty Bank index rising 0.89 per cent to 48,467.45 and the Nifty Financial Services index adding 1.05 per cent to reach 22,634.55.

The market breadth remained firmly positive, with 2,705 stocks advancing, compared to 1,119 declines on the BSE. However, the number of stocks hitting 52-week lows (204) outpaced those reaching 52-week highs (70), indicating some underlying caution. Circuit filter data showed 179 stocks hitting the upper circuit, while 288 touched the lower circuit.

The recovery comes after a four-day decline, supported by December’s retail inflation reading of 5.22 per cent, which has increased expectations for a potential rate cut by the Reserve Bank of India in February. Trading patterns suggest institutional activity remains mixed, with Foreign Institutional Investors continuing their selling streak, while domestic institutional investors provide market support.