Nifty rises 283 points as IT stocks rally on HCL Tech

he Nifty 50 gained 283.25 points (1.27%) to 22,646.60, while the Sensex rose 865.07 points (1.20%) to 72,789.75 in late trade on October 13, 2026. What drove the rally? HCL Technologies reported Q2 FY27 consolidated net profit of ₹5,132 crore, up 21.18% year-on-year. The results supported a broad IT sector rally, with the BSE IT index gaining 4.42%. Key stock and sector moves HCL Technologies: +7.10% TCS: +6.04% Tech Mahindra: +4.23% Infosys: +3.64% BSE Realty index: +1.96% Market breadth remained positive, with 41 Nifty stocks advancing against 9 declining. LTCG tax in focus: Finance Minister Nirmala Sitharaman indicated that the government is open to discussing the removal of long-term capital gains tax during Budget consultations. However, no tax change has been approved. SBI Research has separately proposed removing the 12.5% LTCG tax on equities to encourage longer-term foreign investment. Why it matters: Strong IT earnings have supported market sentiment, but persistent foreign investor outflows, elevated crude prices and global technology-sector weakness remain key risks. What to watch next: IT companies’ earnings guidance, foreign institutional flows and any official announcement regarding LTCG taxation. Market view: The rally is earnings-led, with IT stocks providing strong support. Sustained momentum will depend on further results and broader market participation. Learning outcome: Earnings growth can trigger sector-wide rallies, while proposed tax reforms should be distinguished from confirmed government policy.