GIFT Nifty at 23,258.5 as Oil Slides and Reliance Profit Surges
Key Facts
GIFT Nifty futures pointed to a potentially positive start for Indian stocks, trading at 23,258.5 at 7:58 a.m. India time on Monday, compared with the Nifty 50's close at 23,053.1 on Friday. The signal came before trading began, as the market assessed results from Reliance Industries, India's largest company by market capitalization, and developments in Iran-Qatar talks. Results announced on October 30 showed the company beat profit expectations, with quarterly net profit rising 40.6% year on year. Oil prices also fell in early trading after reaching elevated levels in the previous week. The futures reading remained an indication of what might happen at the open, not the actual outcome of Monday's session.
Reuters said Reliance's net profit rose 40.6% in the September quarter, driven by strength in its energy and digital services businesses. Jio Platforms, the group's subsidiary, posted annual growth of 13.7% in quarterly net profit. The results followed the company's October 30 announcement and were therefore available to investors before Monday's session, rather than a forecast of an outcome yet to be reported. The figures focused on the performance of key units in the group, while Reuters cited Reliance among the factors behind the market's positive outlook. Investors were also watching whether the decline in oil would ease pressure on a market that relies on imported energy.
In energy markets, Brent futures fell 1.40% to $111.84 a barrel, while U.S. West Texas Intermediate crude dropped 1.50% to $102.56 by 00:11 GMT on Monday. A Reuters report said Brent had fallen to $111 from Friday's six-month high of $118, as Iran-Qatar talks entered their third day. An analyst at KCM Trade said, "Ongoing hopes of some form of diplomatic progress, alongside the absence of any tangible military escalation over the weekend, have eased some immediate price pressure for now." The chief executive of Enrich Money also said talks involving Iranian officials and Qatari mediators had raised hopes of a potential breakthrough that could ease supply concerns and improve the outlook for global energy markets. Lower oil prices offered potential support for sentiment in a market such as India, but the price trajectory was linked to a diplomatic development that had not yet produced an announced agreement.
Iranian Foreign Minister Abbas Araqchi said Iranian negotiators were in Qatar to discuss a proposal that could allow the Strait of Hormuz to reopen within two days if the United States met Iranian conditions. He added that there were no direct talks between Tehran and Washington. The statement framed the possibility of reopening the strait as conditional, as Iran-Qatar talks continued for a third day. The developments matter to the oil market because diplomatic hopes are tied to easing supply concerns, according to comments Reuters cited from an official in the brokerage sector. The process did not include confirmation of an agreement or the strait's reopening.
The Nifty 50 ended Friday's session up 0.51% at 23,053.10, while the Bank Nifty fell 0.41% to 54,686.95. Preliminary data showed foreign investors bought Indian shares worth 36 billion rupees in the same session, their sixth buying session in the past 10 trading sessions. For the month, the Nifty 50 ended October up 1.9%, and the Sensex rose 2.7%, ending two months of declines for both indexes. Technology stocks, resilient earnings and expectations of a capital gains tax cut helped support the month's gains, while rising oil linked to Middle East tensions limited them. The information technology index climbed 17.7% in October, its strongest monthly performance in more than six years, while small-cap stocks fell 4.2% and mid-caps dropped 3.4% after reaching record levels in the previous two months.
Kranthi Bathini, director of equity strategy at Wealthmills Securities, said technology stock valuations remained near their historical averages, as AI-related revenues began to demonstrate efficiency gains for Indian software companies. That adds context to the technology sector's October rally and its contribution to the indexes' rebound last month. For the coming sessions, Reuters said Indian automakers would be in focus as October wholesale distribution data were released. Maruti Suzuki said its total sales grew by about 21% during the month. Bharat Electronics also reported a roughly 20% rise in second-quarter net profit and a 26.5% increase in revenue.