Indian Equities Extend Gains on Tuesday, Helped by IT, Pharma Stocks

Indian indices settled higher for the second straight day on Tuesday, led by IT and pharmaceutical stocks.

IT firms., which get a significant share of revenue from the US, gained ahead of the release of America's inflation data on Wednesday. A softer-than-expected inflation print could boost the chances of a US rate cut next week.

Meanwhile, pharmaceutical companies saw buying after the Indian government decided to cut taxes on certain cancer drugs.

At close, the BSE Sensex rose 361.75 points, or 0.4%, to 81,921.29, while the NSE Nifty 50 climbed 104.70 points, or also 0.4%, to 25,041.10.

Divi's Laboratories (NSE:DIVISLAB, BOM:532488) topped the gainers on Tuesday, with shares jumping 5%, followed by LTIMindtree (NSE:LTIM, BOM:540005) and Bharti Airtel (NSE:BHARTIARTL, BOM:532454).

Conversely, HDFC Life Insurance (NSE:HDFCLIFE, BOM:540777), SBI Life Insurance (NSE:SBILIFE, BOM:540719) and Bajaj Finserv (NSE:BAJAJFINSV, BOM:532978) were the top laggards.

In corporate news, IT firm Tata Consultancy Services (NSE:TCS, BOM:532540) has secured a contract of an undisclosed amount from the Mansfield Building Society in the UK to digitally transform its business, according to a Tuesday filing with the stock exchanges.

Meanwhile, power producer SJVN (NSE:SJVN, BOM:533206) signed a memorandum of understanding with GMR Upper Karnali Hydro Power and Indian Renewable Energy Development Agency (NSE:IREDA, BOM:544026) to develop a 900 MW hydroelectric power project in Nepal, according to a Tuesday bourse filing.