Nifty and Sensex jump 1.58% and 1.62% as gains extend to a fourth session
Key Facts
Indian shares closed higher for a fourth consecutive session on Nov. 3, with the Nifty 50 rising 1.58% to 23,810.85 points and the Sensex gaining 1.62% to 76,917.85 points, according to Reuters. The two indexes rose about 5% over four sessions, closing at their highest levels in two months. Reuters attributed the gains to strong corporate earnings, lower oil prices and early signs of foreign investor flows returning. The agency said Indian shares "rose for a fourth consecutive session" on the back of these factors. The close followed a session in which gains spread across most major sectors, while individual stocks showed clear divergence.
The rally extended to 13 of 16 major sectors, while mid-cap stocks rose 1.1% and small-cap stocks gained 0.3%, Reuters reported. Financials and private banks led sector gains, rising 1.8% and 2%, respectively. Banks' performance carried particular weight in the indexes, as HDFC Bank and ICICI Bank together account for about 20% of the Nifty 50. The two stocks rose 3.6% and 2.7%, respectively, amplifying their impact on the benchmark. Outside the benchmark constituents, Marico rose 10% after quarterly earnings exceeded analysts' estimates.
Indian shares moved against the subdued performance of Asian markets, where technology stocks fell ahead of voting in the U.S. midterm elections. Reuters said Indian shares were seen as a hedge against global trading linked to artificial intelligence, as losses in technology companies weighed on regional markets. Among individual stocks, BSE topped the Nifty gainers, while decliners included Infosys, State Bank of India, ONGC, Power Grid Corp and Adani Enterprises, according to Moneycontrol. BSE rose 5.03%, while Power Grid Corp lost 3.04%. The moves showed that broad sector gains did not prevent declines in some stocks.
Foreign flows supported the recovery, with foreign investors net buyers of Indian shares in four of the previous five sessions. Reuters linked the trend to expectations of a cut in long-term capital gains tax and stable earnings. In the previous session, on Nov. 2, foreign investors bought a net 31.15 billion rupees of Indian shares, while domestic institutional investors sold a net 3.92 billion rupees, according to preliminary National Stock Exchange data cited by Reuters. Nomura analysts said they expected foreign investor sentiment toward Indian shares to improve and support inflows in the near term. Their assessment was based on earnings strength, lower initial expectations and most sectors trading at valuations below their averages, alongside a global correction in artificial intelligence stocks.
Oil remained an influential backdrop to the equity session: Brent crude rose 1% to $106 a barrel on Nov. 3, after falling 7% in the previous session. Investors tracked talks between Iran and Qatari mediators, as well as the U.S. attack on Iran's Qeshm Island, Reuters reported. This followed a decline in crude prices in the previous session, which the agency listed among factors supporting Indian shares. A Reuters report on Oct. 28 said higher crude prices and global interest in artificial intelligence stocks could make it harder for Indian shares to outperform. In that assessment, IIFL Capital put Nifty's technical rebound range at 23,300 to 23,500 points, while Novama said a decisive break above 23,480 points was needed for the rally to continue.
The rebound followed pressure on the index in October, when the Nifty 50 briefly entered oversold territory and its losses since the start of the year reached about 13%, according to a Reuters report on Oct. 28. The report noted that the possibility of a rebound did not confirm that the downtrend had ended. In the domestic economy, India's industrial production grew 6.7% year on year in September, compared with growth of 8.0% in August, according to the Ministry of Statistics and Programme Implementation. Manufacturing rose 7.6%, while electricity and gas output increased 11.2% in September. The ministry's schedule says industrial production data for October will be published on Nov. 30, 2026.