Indian stocks rise, led by IT, auto shares

Indian stocks saw an increase on Tuesday, driven by the information technology (IT) and auto sectors. Analysts predict that the benchmark indexes will trade within a range due to the lack of significant catalysts in a shortened holiday week.

The Nifty 50 index increased 0.3 per cent to 23,827.80 points at 10:43 am IST, while the BSE Sensex index also rose 0.3 per cent to 78,759.10. Indian financial markets will be closed on Wednesday for Christmas.

The small caps index and midcaps index both saw gains of 0.5 per cent and 0.3 per cent respectively. Out of the 13 major sectors, nine were trading in positive territory. The IT index increased 0.5 per cent, and the auto index rose 0.9 per cent.

Both the IT and auto indexes dropped by five per cent last week, in line with the benchmarks, due to reduced expectations for US rate cuts in 2025 and ongoing foreign selling.

“The minor rebound is along expected lines as last week’s correction has created buying opportunities due to cheaper valuations,” G Chokkalingam, founder and head of research at Equinomics Research, said.

Attribution: Reuters

Subediting: M. S. Salama