The markets began November on a strong note on Monday, November 2, as the Sensex surged nearly 1,000 points and the Nifty 50 climbed above the 23,300 mark. A combination of easing crude oil prices, strong corporate earnings, renewed foreign investor buying and improving global sentiment triggered widespread buying across Dalal Street.
The rally brought considerable relief to investors after weeks of volatility and concerns over geopolitical tensions, elevated oil prices and foreign fund outflows. The sharp rise in benchmark indices also added thousands of crores to investors’ wealth, with the combined market capitalisation of BSE-listed companies increasing by nearly Rs 4 lakh crore.
The 30-share BSE Sensex opened at 75,178.24, gaining 718.71 points against Friday’s closing level of 74,459.53. The NSE Nifty 50 started the session at 23,222.30, up 169.20 points from its previous close of 23,053.10. Buying gathered pace as the session progressed, taking the Sensex above 75,400 and the Nifty beyond 23,300.
Reliance Industries emerged as the biggest contributor to the rally, with its shares climbing more than 7% in early trading. The strong performance followed the company’s September-quarter results, which showed a significant improvement in profitability.
Reliance reported a consolidated net profit of Rs 29,550 crore for the July-September quarter of FY27, marking a 33.8% increase from the corresponding period last year. Revenue increased 27.8% to Rs 3.62 lakh crore, while EBITDA climbed 23.9% to a record Rs 62,409 crore.
The recovery in its oil-to-chemicals business, supported by stronger refining and petrochemical margins, contributed to the improved performance. Growth in digital services through Jio also strengthened the company’s overall earnings.
Reliance’s rally was particularly important for benchmark indices because of its substantial weightage in both the Sensex and Nifty. Its gains also lifted sentiment across the oil and gas sector.
Tata Steel was another prominent performer, advancing around 4-5%, while NTPC, Maruti Suzuki, Power Grid, State Bank of India, Bharat Electronics, Asian Paints, Larsen & Toubro, Mahindra & Mahindra and UltraTech Cement also attracted buying interest.
Among the Nifty 50 constituents, Reliance Industries, Shriram Finance, Tata Steel, Jio Financial Services and Coal India featured among the leading gainers. Max Healthcare and NTPC also witnessed strong buying interest.
However, the rally was not entirely broad-based. Sun Pharmaceutical Industries, Infosys, Tech Mahindra, Titan and Adani Ports faced selling pressure at different points during the session. Select financial stocks also showed weakness.
The decline in international crude oil prices was one of the biggest triggers behind Monday’s market recovery. Brent crude slipped towards $110 per barrel, falling more than 3% as diplomatic discussions involving Iran and Qatar raised hopes of progress towards ending the conflict in West Asia.
Oil prices had climbed close to $118 per barrel during the previous week, increasing concerns about India’s import bill, inflation and pressure on the rupee. Since India depends heavily on imported crude, any sustained decline in international prices could ease costs for businesses and provide some relief to the economy.
Investors also responded positively to signs of renewed foreign institutional investor participation. Foreign investors purchased Indian equities worth approximately Rs 3,598.54 crore on Friday, according to provisional exchange data. This marked an encouraging development after sustained selling had weighed on domestic equities during the previous month.
Another factor supporting Indian equities was the movement in global bond yields. The US 10-year Treasury yield eased below 5%, improving the relative attractiveness of equities. A softer rupee also offered some support to domestic market sentiment.
Global developments presented a mixed picture. Asian markets traded largely higher, although technology stocks remained under pressure amid concerns over the scale of investments being made in artificial intelligence. Weakness in global technology stocks also kept investors cautious about valuations.
Domestic corporate developments added another layer of support. Jio Platforms shares gained more than 3% after reporting a 13.7% year-on-year rise in September-quarter net profit to Rs 8,389 crore. Revenue increased 11.4% to Rs 40,475 crore.
October automobile sales figures also encouraged buying in automobile stocks, while expectations of continued economic growth and improving corporate earnings supported investor confidence.
Sectorally, oil and gas stocks led the advance, followed by metals, public sector banks, automobiles, infrastructure and consumer durables. Pharmaceutical stocks remained relatively weak.
Investors will now track the ongoing September-quarter earnings season, global crude oil movements, foreign fund flows and developments in West Asia for further direction. Companies announcing quarterly results include ITC, Marico, National Aluminium Company, UPL, Petronet LNG and Escorts Kubota.
The broader market also participated in the recovery, with midcap and smallcap stocks witnessing buying interest. Positive market breadth indicated that the rally extended beyond a handful of heavyweight companies.
Despite the strong opening, investors will need to watch whether the benchmarks can sustain their gains. Developments in West Asia, crude oil prices, foreign institutional investor activity and corporate earnings remain important factors that could determine the next direction of the Indian stock market.
Monday’s rally has provided a strong start to November, but market participants are likely to remain selective as they assess whether improving domestic cues can translate into a sustained recovery.