Indian Shares End Sharply Higher Led By IT Stocks

(RTTNews) - Indian shares rose sharply on Wednesday after data showed India's industrial production grew 7.3 percent in June, the fastest in nearly two years, as against 2.2 percent a year ago and 5.1 percent growth reported for May 2026.

The upside was supported by strong gains in IT stocks for a second day running as skepticism grew over whether massive spending on artificial intelligence by major global technology companies could generate sufficient returns to justify their lofty market valuations.

An ongoing sharp correction in chip stocks elsewhere in South Korea and Japan has become an advantage for Indian information technology companies, which follow an asset-light services model and have relatively little exposure to the AI infrastructure spending cycle.

The 30-share BSE Sensex surged 888.68 points, or 1.16 percent, to 77,654.60 despite another flare-up in Middle East tensions between the United States and Iran, and caution ahead of the Federal Reserve's interest-rate decision later in the day.

Markets also ignored reports suggesting that the U.S. Senate has advanced a long-awaited bipartisan bill to impose more restrictions on major buyers of Russian energy, including India and China.

The passage of the bill would give U.S. President Donald Trump authority to impose tariffs of up to 100 percent on goods from major purchases of Russian oil and gas.

The NSE Nifty index jumped 264.85 points, or 1.10 percent, to 24,250.20 while the BSE mid-cap and small-cap indexes rallied 0.8 percent and 1.5 percent, respectively.

The market breadth was strong on the BSE, with 2,591 shares rising while 1,655 shares fell and 178 shares closed unchanged.

Among the top gainers, HCL Technologies, TCS, Bharti Airtel, Tata Steel, Larsen & Toubro, Trent, Infosys and Hindustan Unilever soared 2-5 percent.