Last Updated on November 3, 2026 8:55 pm by INDIAN AWAAZ

By Our Business Correspondent

Indian equity markets staged a strong rally on Tuesday, with benchmark indices gaining more than 1.5% each as easing crude oil prices, sustained foreign institutional investor (FII) inflows and a stronger rupee improved investor sentiment. Expectations of a possible review of the long-term capital gains (LTCG) tax regime for foreign investors provided an additional boost, while value buying in heavyweight stocks helped the market extend its winning streak to four consecutive sessions.

The rally came despite continued weakness in global technology shares, particularly stocks linked to artificial intelligence (AI), and lingering concerns over geopolitical developments involving Iran. Investors also remained watchful of developments in the United States, where midterm elections were scheduled for Tuesday, and the outlook for global interest rates.

The Finance Minister’s comments on capital gains taxation emerged as one of the key sentiment drivers. Nirmala Sitharaman said the government would consider representations seeking a review of capital gains taxes applicable to foreign investors. Although no policy change was announced, the remarks raised hopes among market participants that the government could examine concerns relating to the taxation of overseas investment flows.

The benchmark Nifty 50 closed above the psychologically important 23,800 mark, while the Sensex advanced more than 1,200 points. The S&P BSE Sensex jumped 1,225.07 points, or 1.62%, to settle at 76,917.85. The NSE Nifty 50 gained 370.05 points, or 1.58%, to close at 23,810.85.

The sustained recovery has significantly improved the market’s near-term performance. Over the past four trading sessions, the Sensex has climbed 5.01%, while the Nifty has advanced 4.47%, reflecting renewed buying interest in frontline shares after a period of volatility.

Banking and heavyweight stocks lead the rally

Banking, financial services, FMCG and real estate stocks attracted strong buying interest, providing much of the support to the benchmark indices. Bharti Airtel, HDFC Bank and ICICI Bank were among the major contributors to the Nifty’s gains.

Bharti Airtel advanced 3.77%, while HDFC Bank and ICICI Bank rose 3.64% and 2.67%, respectively. Buying in these heavyweight counters helped sustain the upward momentum throughout the session.

The strength in private sector banking shares indicated that investors were willing to increase exposure to large-cap financial stocks amid improving currency conditions and expectations of greater stability in foreign investment flows.

FMCG and realty shares also remained in demand, reflecting selective buying across consumption-oriented and interest-rate-sensitive sectors. However, the rally was not broad-based across all industries. Public sector banks and metal stocks remained under pressure, limiting gains in some parts of the market.

The broader market underperformed the frontline indices, suggesting that investors continued to favour established large-cap companies over mid- and small-sized stocks. The Nifty MidCap 150 index rose around 1%, while the Nifty SmallCap 250 index gained 0.42%.

Market breadth on the NSE was nevertheless positive. A total of 2,127 shares advanced, against 1,477 declining stocks, while 109 remained unchanged. The positive breadth indicated that buying extended beyond a handful of index heavyweights, although the relatively modest gains in smaller stocks reflected continued selectivity.

Global cues remain mixed

Developments in overseas markets offered a mixed backdrop for Indian equities. Asian markets ended lower on Tuesday as technology shares remained under pressure amid concerns over the profitability of massive investments in artificial intelligence infrastructure. Japan’s cash market remained closed for Culture Day.

European markets also traded lower, with investors assessing the global technology sell-off and awaiting the outcome of the US midterm elections and the Bank of England’s monetary policy decision later in the week.

Australia’s Reserve Bank raised its benchmark cash rate by 25 basis points to 4.85%, the highest level since November 2008. The increase marked the fifth rate hike by the central bank this year and reflected continuing concerns over inflation. ABC News+1

On Wall Street, trading ended on a mixed note on Monday, November 2, as weakness in technology stocks offset gains in other sectors. The Dow Jones Industrial Average advanced 213.67 points, or 0.41%, to 51,983.98. However, the S&P 500 declined 38.67 points, or 0.51%, to 7,541.40, while the Nasdaq Composite fell 272.68 points, or 1.07%, to 25,164.32.

Technology and semiconductor shares remained under pressure as investors reassessed the scale of capital expenditure on AI infrastructure and the potential returns from such investments. Nvidia declined 1.26%, Microsoft fell 2.83% and Apple lost 1.83%. Oracle shares dropped more than 8% amid reports of plans to raise $20 billion through a combination of equity and debt offerings.

Marvell Technology plunged 12.72%, while optical-components manufacturer Lumentum declined 18.59%. The two companies had announced an all-stock acquisition agreement under which Marvell would acquire Lumentum in a transaction carrying an implied enterprise value of $115 billion. The deal highlights the growing importance of optical connectivity in meeting the expanding bandwidth requirements of AI data centres. SEC+1

Apple’s quarterly results also remained in focus. The company reported fiscal fourth-quarter revenue of $114.5 billion, up 12% year on year and above analysts’ estimates of $113.4 billion. Net income increased 12% to $30.71 billion, while earnings per share stood at $2.10 against expectations of $1.99.

However, the company’s December-quarter gross margin forecast of 45% to 46% was below the 47.9% reported in the September quarter. The cautious margin outlook weighed on investor sentiment despite the better-than-expected quarterly performance.

Meanwhile, US manufacturing activity expanded at a faster pace in October. The Institute for Supply Management’s manufacturing Purchasing Managers’ Index (PMI) rose to 55.5 from 54.5 in September, exceeding the market forecast of 54.5. The reading indicated continued expansion in the manufacturing sector.

Investors were also monitoring the US midterm elections, as the results could influence expectations surrounding fiscal policy, government spending and regulation, particularly in the technology industry.

Commodities, currency and bond yields

In the domestic commodity market, crude oil remained an important factor influencing investor sentiment. Brent crude futures for December 2026 delivery, however, recovered during Tuesday’s session, rising 82 cents, or 0.78%, to $105.59 a barrel. The rebound followed a sharp decline in the previous session, indicating that geopolitical developments and supply-related concerns continued to contribute to price volatility.

The Indian rupee edged higher against the US dollar, trading at 94.7750 compared with its previous closing level of 94.8400. The marginal appreciation provided some relief amid concerns over imported inflation and the country’s oil import bill.

In the government securities market, the yield on India’s 10-year benchmark government bond increased to 7.324%, compared with 7.313% in the previous session. In the international currency market, the US Dollar Index rose 0.06% to 101.81, while the yield on the US 10-year Treasury bond advanced 0.39% to 4.909%.

Gold futures also remained under pressure. MCX gold contracts for December 4, 2026 delivery declined 1.36% to Rs 1,38,282. The movement in precious metals reflected changing investor positioning amid currency fluctuations, bond yields and global economic uncertainties.

Stocks in focus: Quarterly earnings drive sharp moves

Corporate earnings announcements triggered significant movements in several individual stocks.

Marico rallied 10% after reporting a 30.95% year-on-year increase in consolidated net profit to Rs 550 crore for the second quarter of FY27, compared with Rs 420 crore in the corresponding quarter of the previous financial year. Revenue from operations rose 12.96% to Rs 3,897 crore for the quarter ended September 30, 2026.

State Bank of India (SBI) shares declined 1.70% despite the lender reporting a 14.28% increase in net profit to Rs 23,038 crore in Q2 FY27, against Rs 20,160 crore a year earlier. Net interest income rose 14.69% to Rs 49,143 crore from Rs 42,847 crore. The stock’s decline indicated that strong reported earnings did not necessarily translate into immediate buying interest.

KEC International slumped 9.36% after its consolidated profit after tax plunged 82% to Rs 30 crore from Rs 161 crore in the year-ago quarter. Revenue also declined 10% to Rs 5,468 crore from Rs 6,092 crore, raising concerns over the company’s quarterly performance.

Akums Drugs and Pharmaceuticals advanced 3.82% after its consolidated net profit surged 176.73% to Rs 112.85 crore from Rs 40.78 crore. Revenue from operations increased 31.93% year on year to Rs 1,342.38 crore.

KRBL gained 10.59% following a 50.44% jump in consolidated net profit to Rs 258.93 crore in Q2 FY27, compared with Rs 172.11 crore in the corresponding period last year. Revenue from operations grew 14.31% to Rs 1,727.36 crore.

Trident shares climbed 7.11% after consolidated profit after tax increased 93.09% to Rs 175.58 crore from Rs 90.93 crore. However, revenue from operations declined 3.79% to Rs 1,719.48 crore from Rs 1,787.17 crore, indicating that improved profitability came despite a contraction in revenue.

Kitex Garments surged 15.08% after the company reported an adjusted net profit of Rs 16.75 crore for the September quarter, against an adjusted net loss of Rs 15.13 crore in the corresponding quarter last year. Net sales increased 66.29% to Rs 203.04 crore from Rs 122.10 crore.

Market outlook

The four-session advance has strengthened the near-term technical outlook for domestic equities, with the Nifty moving above 23,800 and the Sensex approaching 77,000. However, the sustainability of the rally will depend on continued foreign investment flows, crude oil movements, corporate earnings and developments in global financial markets.

The possibility of a review of capital gains taxation has also emerged as an important sentiment factor, although investors will look for concrete policy signals rather than relying solely on expectations.

Geopolitical uncertainty, elevated bond yields and continuing weakness in global technology shares remain potential sources of volatility. While large-cap banking and consumption stocks have provided support to the latest advance, the relatively modest performance of mid- and small-cap shares suggests that investors are still exercising caution.

For the coming sessions, the direction of crude oil prices, movement in the rupee and fresh institutional flows are likely to remain important indicators of market sentiment.

Disclaimer: This market report is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security.

New Listing Report

BLS Polymers, SFC Environmental Technologies Make Strong Market Debuts

Shares of BLS Polymers and SFC Environmental Technologies made strong debuts on the BSE on Tuesday, delivering substantial listing gains to investors.

BLS Polymers shares listed at Rs 244.10, a premium of 62.73% over the issue price of Rs 150. The stock extended its gains during the session, touching a high of Rs 285.25 and a low of Rs 225. It finally settled at Rs 269.30, representing a gain of 79.53% over the issue price. More than 77.60 lakh shares changed hands on the BSE.

SFC Environmental Technologies also witnessed a positive debut. Its shares opened at Rs 354.05, up 7.29% against the issue price of Rs 330. The stock subsequently touched a high of Rs 424.85 and a low of Rs 354.05 before closing at Rs 424.85, delivering a listing gain of 28.74%. Trading volume on the BSE stood at more than 17.33 lakh shares.

The strong debut of both companies reflected positive investor interest in the newly listed stocks, although their subsequent performance will depend on business fundamentals, earnings growth and prevailing market conditions.