Sensex rises 739 points, Nifty gains 0.9% as Reliance leads market rally; crude prices fall

Indian equity benchmarks extended their gains into Monday afternoon, November 2, with the Sensex and Nifty trading close to their highest levels since late September. A sharp rally in Reliance Industries, easing crude oil prices and positive domestic cues supported sentiment, helping the markets shrug off a weak finish on Wall Street.

At 12.55 pm, the BSE Sensex was trading at 75,198.92, up 739.39 points or 0.99%. It had touched an intraday high of 75,557.06 earlier in the session. The NSE Nifty50 stood at 23,265, gaining 211.90 points or 0.92%, after rising to a high of 23,360.50.

According to SBI Securities, the frontline indices had climbed to their highest levels since late September, with Nifty futures testing their 50-day exponential moving average (EMA). The advance-decline ratio stood at 35:15.

Market breadth remained positive on the BSE, where 2,802 stocks advanced against 1,429 declines. As many as 86 stocks touched their 52-week highs, while 179 were locked in the upper circuit.

Reliance leads the rally as energy stocks outperform

Reliance Industries was the biggest contributor to the benchmark gains, rising 7.36% to ₹1,250.60 from its previous close of ₹1,164.90. The stock touched an intraday high of ₹1,260, with trades worth ₹7,138.39 crore, making it the Nifty50 stock with the highest value traded.

SBI Securities identified Reliance as the leading contributor to the Nifty's gains. The rally followed the company's stronger-than-expected September-quarter performance, with its net profit rising 40.6% year on year to ₹25,548 crore. Improved refining and petrochemical margins supported its oil-to-chemicals business, while Jio Platforms also reported higher quarterly profits.

Other prominent gainers included Shriram Finance, which advanced 5.04% to ₹864.60, and Tata Steel, which rose 4.63% to ₹175.36. Coal India gained 4.47% to ₹406.40, while Jio Financial Services added 4.35% to ₹213.40.

The Nifty Energy index emerged as the best-performing sectoral index during the session. Gains in energy and commodity-linked stocks helped sustain the broader market rally.

Infosys, pharma shares among the biggest losers

Selling pressure was concentrated in select heavyweight stocks, particularly in the IT and pharmaceutical segments.

Infosys was the biggest Nifty50 loser, declining 2.43% to ₹1,156.20 against its previous close of ₹1,185. The stock recorded a traded value of ₹1,009.81 crore, the highest among the session's losers.

Sun Pharmaceutical Industries fell 1.52% to ₹1,750.70, while ICICI Bank slipped 1.19% to ₹1,381.30. Adani Ports declined 1.17% to ₹1,828.40, and Cipla shed 0.80% to ₹1,367.90.

Nifty Media was the worst-performing sectoral index.

Hemang Gor, senior research analyst for derivatives and technical research at Axis Direct, had observed that a 2.3% surge in IT services and strength in pharmaceutical stocks had previously concealed a broader movement of market capital towards large-cap safety. Monday's trading showed a different trend, with IT stocks facing selling pressure.

Reliance earnings and softer oil prices support sentiment

The domestic rally came despite a sharp technology-led sell-off on Wall Street on Friday. The Nasdaq plunged 2.9%, marking its steepest decline since June, while the S&P 500 fell 1.8% and the Dow Jones Industrial Average lost 1.1%.

Concerns over the scale of artificial intelligence-related capital expenditure weighed on technology stocks. Intel and Reddit plunged 29% each following weak guidance, while Amazon's spending plans added to investor concerns about the returns on heavy AI investments.

Asian markets presented a mixed picture on Monday. South Korea's Kospi gained 0.7%, while Japan's Nikkei declined 0.2%.

Indian equities, however, drew support from domestic earnings and easing oil prices. Foreign institutional investors also bought Indian equities worth ₹3,598 crore on Friday, providing an additional positive signal for the market.

Reliance's strong quarterly results were a major domestic trigger. Its shares had come under pressure earlier in the year, making the latest earnings performance an important boost to investor sentiment.

Crude oil extends losses amid Iran-Qatar discussions

Oil prices continued to decline for a third consecutive session as discussions involving Iran and Qatar raised hopes of progress towards ending the conflict in West Asia.

West Texas Intermediate crude fell around 2%, with the decline easing concerns about the geopolitical risk premium that had pushed oil prices higher. On the Multi Commodity Exchange, crude oil futures traded near ₹9,593, down 3.46%.

The decline in crude prices offered relief to investors concerned about India's exposure to imported energy. Lower oil prices can ease pressure on the country's import bill and inflation outlook, although prices remained elevated in the international market.

Nifty support at 23,150, resistance near 23,480

Technical indicators suggested that the market's immediate direction would depend on whether the Nifty could sustain its gains above key resistance levels.

SBI Securities identified the Nifty's crucial support zone at 23,150-23,170, with resistance placed between 23,460 and 23,480. A sustained move above 23,480 could extend the rally towards 23,630. Conversely, a fall below 23,150 could expose the index to the next support range of 22,980-23,000.

The options market showed significant call writing at the 23,400 and 23,500 strikes. On the put side, substantial open interest was concentrated at 23,300, followed by 23,200.

For the Sensex, support was placed at 74,900, while resistance stood at 75,800.

Gor said a decisive move above the Nifty's 23,300 resistance level could open the way towards 23,500. He added that the market's underlying trend remained constructive as long as the index stayed above 22,800.

With trading still under way, investors will monitor whether the Nifty can sustain levels above 23,300 and whether continued strength in energy and commodity stocks can offset weakness in IT and pharmaceutical shares.