Sensex rises 1.06% as oil retreats and Iran-Qatar talks enter third day
Key Facts
The Sensex rose 1.06% to 75,247.63 points, while the Nifty 50 gained 0.93% to 23,267.45 at 9:22 a.m. India time on Nov. 2, according to a Reuters report. The gains came as oil prices retreated and Iranian and Qatari officials continued talks for a third day, seeking an agreement to end the U.S.-Israeli war on Iran. Fifteen of 16 major sector groups advanced at the open, signaling broad gains across sectors. Reliance Industries, India’s largest company by market capitalization, was among the market’s biggest drivers after reporting quarterly earnings that beat expectations. The start of the week thus combined a domestic boost from corporate results with temporary relief from oil-related pressure tied to geopolitical developments.
Brent crude fell 3.2% to $109.75 a barrel, while West Texas Intermediate declined 3.3% to $100.69 by 04:07 GMT, according to a Reuters update. The drop came on the third day of Iran-Qatar talks aimed at advancing an agreement to end the war, though Tehran had not announced a deal. Iranian Foreign Minister Abbas Araghchi said the purpose of the talks was to "continue consultations with Qatari mediators," adding that his country was prepared for "defense and diplomacy." Tim Waterer, market analyst at KCM Trade, described the decline as "a technical correction this morning after last week's strong gains." The report added that hopes for diplomatic progress and the absence of tangible military escalation over the weekend eased immediate pressure on prices.
On the corporate front, Reliance shares rose 5.4% after the company reported quarterly results, with earnings exceeding market expectations. Reuters said core earnings at Jio Platforms, its digital services arm, increased 16.6% in the quarter ended September 30, 2026. Core earnings from the refining business also jumped 68%, which the report described as a key earnings driver. Analysts at JPMorgan said the results reflected strength in refining and petrochemicals margins. They said the company’s valuations were attractive and retail-sector momentum could improve gradually, adding to the results as evidence of the performance of Reliance’s operating units.
The two main indexes rose alongside broader market gains in a Reuters update at 9:42 a.m. India time, with the small- and mid-cap indexes up 0.6% and 0.8%, respectively, and 15 of 16 major sector groups advancing. The monthly picture was mixed: the Nifty 50 ended October up 1.9% and the Sensex up 2.7%, ending a two-month losing streak, while small-caps fell 4.2% and mid-caps declined 3.4%. Information technology was the month’s biggest gainer, with its index rising 17.7%, its strongest monthly performance in more than six years. Shares of India’s four largest technology companies also climbed between 16% and 22%. The gains show a contrast between the rebound in major indexes and strength in technology on one hand, and losses in smaller-company shares during October on the other.
Officials and analysts linked the improvement in sentiment to hopes for a resolution to the war after successive days of talks, alongside earnings momentum, credit growth and strong economic growth. G. Chokkalingam, founder and head of research at Equinomics Research, said sentiment had improved on hopes of finding a settlement to the war after the successive rounds of talks. He said these factors were supporting the market despite inflationary pressures linked to higher oil prices and weak rainfall. Oil remains a sensitive backdrop for Indian equities: Brent ended Friday, Oct. 30, at $118 a barrel, its highest level in six months, before retreating to around $110 in a Reuters update on Monday. Reports link crude’s moves to mediation developments and escalation risks, without establishing that the oil decline alone explains the rise in shares.
The outlook for crude remains tied to what may follow the U.S. midterm elections scheduled for Tuesday; Reuters reported that tougher rhetoric on Iran after the election could push Brent toward $120 a barrel. The possibility comes after crude closed at a six-month high at the end of October, keeping the risk of renewed pressure in view despite the decline in morning trading. The U.S. Bureau of Economic Analysis is scheduled to release its second estimate of third-quarter gross domestic product and corporate profits on November 25. The report did not specify a date for another round of Iran-Qatar talks. The stock figures in the report remain a morning market reading, not the session close.