Indian shares snap losing run on IT boost; oil dips after Trump comments

Indian shares recovered from their lowest levels in nearly two months on Tuesday, led by value buying after four straight session of losses and a continued surge in information technology stocks.

After a nearly 3% slide over the previous four sessions that was driven by Iran war jitters and unprecedented foreign outflows, the benchmark Nifty 50 rose 0.43% to 23,483.55 on Tuesday, while the BSE Sensex gained 0.52% to 74,649.84.

On the day, Indian equities slipped to seventh place globally in terms of total market capitalisation, with South Korea’s chip-heavy listed universe overtaking India.

U.S. President Donald Trump’s comments that talks with Iran are still underway eased nerves sparked by an earlier report that Tehran had suspended indirect negotiations with Washington.

Brent crude fell 1.3% to $93.7 a barrel, providing a modicum of relief for net energy importer India.

Eight of the 16 major sectors rose, with broader small-caps and mid-caps gaining 0.4% and 0.2%, respectively.

“We are seeing value buying as well as sectoral rotation. The momentum is picking up in IT sector which has been the worst hit this year,” said Anita Gandhi, head of institutional business at Arihant Capital Markets.

“Markets are still in the midst of uncertainties regarding U.S.-Iran war and a delayed monsoon and will need clarity on these two fronts for any further material gains,” Gandhi said.

IT stocks rose 4.2% on Tuesday, taking their gains to 7% in two sessions.

“Recent commentary from global software companies indicates that rising AI adoption is not only benefitting AI capex and LLM vendors, but also driving demand for software companies,” said Sandeep Shah, director of Equirus Securities.

Heavyweight financials ended 0.6% lower, slightly recovering from a 1.4% drop intraday.

Meanwhile, state-owned hydropower company NHPC lost 6.4% as the government launched an offer for sale of shares at an 8% discount.