Indian stock markets began the Diwali week on a strong note on Monday, November 2, with benchmark indices recording their biggest single-day gains in several weeks. The Sensex surged 1,233.25 points, or 1.66%, to close at 75,692.78, while the Nifty 50 climbed 387.70 points, or 1.68%, to settle at 23,440.80.
The rally was supported by a sharp rise in Reliance Industries shares, easing crude oil prices and growing optimism over efforts to end the conflict involving Iran. Strong quarterly earnings from heavyweight companies also encouraged investors to return to the market after a period of uncertainty.
Both benchmark indices extended their gains for a third consecutive trading session. The Sensex ended at its highest level in nearly two months, while the Nifty comfortably crossed the 23,400 mark. The latest advance also added around ₹8 lakh crore to the total market value of companies listed on the BSE, reflecting the scale of the buying activity.
Reliance Industries was the biggest driver of Monday’s rally. Its shares jumped 11.6%, marking the company’s strongest single-day gain since April 2020. The stock’s performance followed its September-quarter results, which showed a 40.6% year-on-year increase in consolidated net profit to ₹25,548 crore. The earnings were higher than market estimates and helped strengthen investor confidence in the country’s largest listed company.
Improved refining and petrochemical margins supported Reliance’s performance, while its businesses across digital services and retail remained important areas of investor interest. The sharp rise in the stock also made a substantial contribution to the Nifty’s overall gains.
Other major Nifty gainers included Tata Steel, Shriram Finance, Coal India and JSW Steel. Metal stocks attracted buying interest, while energy and financial shares also supported the market. Delhivery gained after returning to quarterly profitability, while Bank of Baroda advanced following its latest operating performance and an improved growth outlook.
On the losing side, Infosys, Adani Ports, Sun Pharmaceutical Industries, Axis Bank and HDFC Life were among the notable Nifty laggards. Information technology, pharmaceutical and media stocks faced selling pressure even as most other sectors moved higher. The decline in these shares, however, was not enough to weaken the broader market rally.
The strength was visible beyond the frontline indices. The Nifty Midcap index rose around 1%, while the Nifty Smallcap index gained approximately 0.7%. This indicated that buying was not limited to a handful of large companies and extended to a wider section of the market.
Sectoral performance also remained largely positive. Energy, oil and gas, consumer durables, infrastructure, automobiles and public sector banks were among the leading sectors, with gains ranging from around 1% to 4.6%. Information technology, media and pharmaceutical indices, on the other hand, ended lower by approximately 0.5% each.
A decline in international crude oil prices provided another important reason for the improvement in investor sentiment. Brent crude, which had climbed to around $118 a barrel on Friday, retreated towards the $109-$110 range. The fall eased some concerns about India’s energy import bill and the pressure that expensive oil can place on inflation and corporate costs.
India imports a large share of the crude oil it consumes. A sustained rise in international oil prices can increase the country’s import expenditure, put pressure on the rupee and make fuel more expensive. Lower crude prices, therefore, tend to provide some relief to the economy and improve the outlook for several oil-consuming industries.
Investors were also encouraged by developments surrounding diplomatic efforts to end the US-Israeli war on Iran. Discussions involving regional officials raised hopes that tensions could ease and that disruptions to energy supplies might gradually reduce. However, the situation remains uncertain, and any fresh escalation could quickly affect global markets and oil prices.
There was also interest in reports suggesting possible tax relief for equity investors. The Securities and Exchange Board of India was reported to have recommended changes relating to long-term capital gains tax for foreign investors and domestic mutual fund investors switching between schemes. The proposal added to the positive mood, although investors will watch for any official clarification before drawing conclusions.
Monday’s rally offered a strong start to November after weeks of volatility linked to geopolitical tensions, crude prices and global market movements. With corporate earnings continuing and international developments influencing investor decisions, market participants will closely monitor foreign fund flows, oil prices and further diplomatic progress.