Nifty Jumps Over 300 Points: Here’s Why Indian Markets Are Rising on Tuesday

The Nifty 50 recovered above 22,650 on Tuesday after Monday’s sharp decline, supported by IT stocks, rupee strength and some relief in oil prices. However, the broader market remained uneven.

Nifty 50 Moves Back Above 22,650

Indian equities recovered on Tuesday, 13 October 2026, with the Nifty 50 crossing the 22,650 mark after the previous session’s decline. The index climbed to around 22,562 in early trading, a gain of nearly 0.9% over Monday’s close of 22,363.35. The rebound was led by information technology companies, with stronger quarterly earnings encouraging buying in select large-cap stocks.

The move offers relief after a volatile start to the week, but it does not by itself confirm a trend reversal. Nifty fell 157.10 points, or 0.70%, on October 12, after giving up early gains. The contrast between Monday’s reversal and Tuesday’s recovery shows how sensitive the index remains to earnings, energy prices and global developments. 

Reasons for Rebound in Nifty

Here are the important factors that have led to the sharp surge in the Indian markets on Tuesday, October 13, 2026. 

IT and Banking Stocks Pull Nifty Above 22,650

IT and banking stocks supported the Nifty 50's recovery on Tuesday, October 13. Technology shares led the gains, with HCLTech and Tata Consultancy Services (TCS) rising around 5.4% each following their quarterly earnings announcements. The Nifty IT index gained 3.4% in early trade, outperforming the broader market. 

Banking stocks also contributed to the recovery, with the Nifty Bank index rising 1% to 55,466. HDFC Bank and ICICI Bank combinedly have a weightage of 19% in the Nifty 50 index. Both banking heavyweights have contributed nearly 66 points towards Nifty’s gain on Tuesday, October 13, 2026. As a result, these two stocks have emerged as the top pullers for the Nifty 50 index. 

Remarks on STT and LTCG Boost Market Sentiment 

Finance Minister Nirmala Sitharaman’s remarks on the Securities Transaction Tax (STT) and Long-Term Capital Gains (LTCG) tax provided an additional boost to Indian equities on Tuesday, October 13. 

Sitharaman indicated that the government was open to considering stakeholders’ views on LTCG taxation, raising expectations of a possible review of capital market taxes. Currently, long-term capital gains exceeding ₹1.25 lakh on listed equities are taxed at 12.5%, while the Union Budget 2026 increased STT on futures from 0.02% to 0.05% and on options premiums from 0.10% to 0.15%. 

Her remarks helped improve investor sentiment, although no formal changes to the tax structure have been announced.

Rupee Recovery and Oil Prices Ease Some Pressure

A firmer rupee, softer bond yields and some moderation in crude oil prices also supported domestic equities. The Reserve Bank of India’s recent measures to address foreign-exchange pressures provided an additional sentiment boost. As India imports most of its crude requirements, lower oil prices can help expectations for the trade balance, inflation and corporate costs.

Nevertheless, crude volatility remained high, and the currency outlook is still exposed to geopolitical developments and international capital flows. These factors could limit the durability of the market recovery, even if they temporarily move in a favourable direction.

Short Covering Supports Nifty's Recovery

Short covering in Nifty futures also contributed to the index's sharp recovery on Tuesday, October 13. According to the data, open interest in the October Nifty futures contract declined by 0.63%, even as prices moved higher. This combination of rising prices and falling open interest typically indicates short covering.

Conclusion

The Nifty’s return above 22,500 marks a positive change from Monday’s weak close. Stronger IT stocks, a firmer rupee and some relief in crude helped improve risk appetite on 13 October. However, the index is testing a resistance band, while inflation, oil prices, foreign flows and uneven broader-market participation remain potential obstacles.

For the short term, 22,800 is the crucial zone to monitor. A decisive breakout and wider participation would strengthen the recovery case; failure to sustain the advance would keep 22,300 and the 22,180 swing-low region in focus.