Indian shares inch higher led by pre-earnings rally in IT stocks; RBI decision eyed

Indian shares rose on Tuesday, led by gains in information technology stocks ahead of quarterly earnings, while concerns over an escalation in the Middle East war ahead of U.S. President Donald Trump’s deadline for Iran to reach a deal kept investors cautious.

Investors are waiting for the Reserve Bank of India’s policy decision due on Wednesday, its first since the conflict began.

The Nifty 50 rose 0.68% to 23,123.65 and the Sensex added 0.69% to 74,616.58, marking a second straight session of gains.

Fourteen of the 16 major sectors advanced, while small-caps fell 0.1% and mid-caps rose 0.2%.

IT stocks jumped 2.5%, extending gains to a fourth session ahead of Tata Consultancy Services’ earnings on Thursday.

“While the concerns around AI disruption for IT sector persist from a long-term perspective, we are seeing some value buying emerging in the sector ahead of Q4 earnings,” said Anita Gandhi, head of institutional business at Arihant Capital Markets.

However, she said the sustenance of the rally hinges on positive commentary from companies.

Metal index rose 1.6% as Hindalco and Vedanta jumped 3% and 3.4% after JP Morgan upgraded them to “overweight”.

Rate sensitives such as financials, banks , auto rose 0.1%-0.3% ahead of RBI decision, in which the central bank is expected to keep interest rates unchanged as policymakers assess the fallout from the Iran war.

Meanwhile, oil prices hovered around $109 per barrel, after Trump reiterated threats to strike Iran’s power plants and civilian infrastructure unless Tehran reaches a deal by 8 p.m. EDT Tuesday, or 5:30 a.m. IST on Wednesday, to reopen the Strait of Hormuz.

Elevated crude prices strain India’s import bill and weigh on economic growth and corporate margins.

Among stocks, Jubilant Foodworks shed 10.4% after business update spurred worries of subdued March quarter earnings.