Indian equity benchmarks are staging a strong recovery in today’s trading session, clawing back a significant portion of the losses from yesterday’s sharp sell-off.

The Nifty 50 is trading around 22,479, up over 1.1%, while the Sensex has surged past 72,350 points with a gain of more than 760 points. While large-cap benchmarks and mid-cap indices are seeing widespread buying, the broader market shows a noticeable split: small-caps are trading mostly flat, and micro-caps might be experiencing slight profit booking, indicating that the session’s strength remains concentrated in higher-quality large-caps.

The primary catalyst behind today’s upbeat sentiment is a temporary easing of geopolitical anxiety in the Middle East. Remarks from US President Donald Trump indicating a pause on prospective military strikes against Iran prior to the upcoming US elections have reassured global markets, calming immediate fears of energy trade disruptions through the Strait of Hormuz. This de-escalation signal triggered a pullback in global crude prices, with Brent crude easing off its recent highs to around $103 a barrel following a 4% spike in the previous session. For an import-dependent economy like India, cooling oil prices provide crucial macro relief by softening expectations surrounding inflation and currency pressure.

On the domestic front, the technology sector is acting as the central engine for today’s rally, buoyed by strong second-quarter earnings from Tata Consultancy Services Ltd. TCS reported a 15% year-on-year increase in net profit to ₹13,884 crore alongside an 11% growth in top-line revenue, reviving investor confidence in IT demand. This strong performance sparked buying across the entire technology basket, lifting major peers like Infosys Ltd., HCL Technologies Ltd., and Tech Mahindra Ltd., and pushing the Nifty IT index up nearly 2.4%. The earnings momentum has largely overshadowed broader concerns surrounding US H-1B visa fees, as investors refocus on strong execution and long-term artificial intelligence deal pipelines.

Beyond IT, widespread buying across consumer goods, automobiles, and banking heavyweights, including HDFC Bank Ltd., ITC Ltd., Bharti Airtel Ltd., and Hindustan Unilever Ltd., is keeping the benchmark rally intact. However, the broader recovery remains somewhat selective; prominent heavyweights such as Reliance Industries Ltd. and Bharat Electronics Ltd. are bucking the upward trend and trading lower, preventing headline indices from seeing an all-out, unconstrained breakout.