Sensex surged 1,116.29 points and Nifty reached 22,944.85 on October 15 as investors bought IT shares. VK Vijayakumar said, "The strength in the IT stocks following the results of HCLTech and the optimism surrounding that will hold the IT index strong." Many shares advanced while others fell during the trading session.

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Benchmark indices Sensex and Nifty were trading up to 1.5% higher on October 15 due to various reasons, including buying in IT shares.

At 10:48 am, the Sensex was up 1,116.29 points or 1.53% at 73,898.18, and the Nifty was up 322.15 points or 1.42% at 22,944.85. About 1,653 shares advanced, 1,918 shares declined, and 202 shares were unchanged.

Key reasons behind market gain

1) Buying in IT shares

IT index gained 2.4%, taking the index's three-session rise to about 8.3%. Infosys, TCS and HCLTech added 3% each.

"The strength in the IT stocks following the results of HCLTech and the optimism surrounding that will hold the IT index strong," said VK Vijayakumar, chief investment strategist at Geojit Investments.

Tech Mahindra and Wipro added 3.5% and 1.7%, respectively, ahead of their quarterly results due later in the day.

Other Asian markets fell, dragged by AI-linked stocks, as quicker-than-expected US inflation reinforced concerns over tighter global monetary conditions, eroding the appeal of high-growth companies whose valuations are sensitive to interest-rate assumptions.

From the Indian market perspective, the correction in AI stocks is a positive, as that could potentially reverse the ongoing, persistent, record foreign outflows, Vijayakumar said.

"The hotter-than-expected US inflation print which spiked from 3.4% in August to 3.7% in September has increased the possibility of yet another rate hike by the Fed in October. This concern triggered big selling in the US market which led to a sharp correction of 1.88% in the tech-heavy Nasdaq. AI stocks bore the brunt of the selling. The fear has spread to South Korea and Japan impacting their markets in early trade today. Nikkei is down by above 4% and Kospi down by more than 7%.

"From the Indian market perspective, the correction in AI stocks is a positive. FIIs who have been selling Indian stocks and buying AI stocks will halt this trend and under favourable conditions might even reverse it. Indications that the finance ministry might reconsider the taxation of LTCGs in the coming Budget, have the potential to keep the market resilient. The strength in the IT stocks following the results of HCLT and the optimism surrounding that will hold the IT index strong. The expected good Q2 results from financials can impart resilience to the market," said Vijayakumar.

2) Value buying

Value buying emerged at lower levels with markets trading near six-month lows. Sensex surged 1,100 points while Nifty was trading near 22,950-mark.

3) Technical reason

Bearishness will emerge in the markets only when Nifty trades below 22,600, said analysts.

"With Sensex weekly expiry today, volatility could remain elevated, leading to sharp intraday moves. A sustained recovery could take Nifty towards 22,750–22,850, while a decisive break below 22,500 may invite fresh selling pressure. Traders should focus on price action around key levels and avoid chasing sudden moves during the expiry session," said Gaurav Udani, Founder, Thincredblu Securities.

"In the coming sessions a move above last week high of 22,776 will open further pullback towards 23,000-23,100 levels. Failure to move above 22,776 will signal consolidation in the range of 22,300-22,775.

"On the higher side Index need to start forming higher high and higher low on a sustained basis in the weekly chart and reclaim 23,100 levels being the recent breakdown area to signal a pause in the last 2 months sharp decline," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

4) Heavyweight stocks rise

High-weight financials and private banks gained 1% and 1.4%, respectively. The two heaviest stocks in the benchmarks, HDFC Bank and ICICI Bank rose 1.2% and 2%. Reliance Industries climbed 2.1% after filing RHP for mega Jio Platforms' IPO.

On the other hand, Nifty PSU Bank fell 2% and was the worst performer among its peer indices. Losses in SBI and Canara Bank dragged down the index.