Sensex Rises 1,225 Points and Nifty Crosses 23,800 as Foreign Buying and Lower Oil Lift Markets

Indian equity indices closed sharply higher on 3 November, extending a four-session rally that has added roughly 5 percent to the benchmarks. The BSE Sensex settled 1,225.07 points, or 1.62 percent, higher at 76,917.85. The NSE Nifty 50 rose 370.05 points, or 1.58 percent, to 23,810.85, reclaiming the 23,800 level and finishing at a two-month high.

Both indices opened higher and built on the gains through the session, closing at their respective intraday peaks. The advance was broad-based. Thirteen of the 16 major sectoral indices finished in positive territory. Mid-caps rose about 1.1 percent and small-caps added 0.3 percent. Of the 3,713 stocks traded on the NSE, 2,127 advanced while 1,477 declined.

Foreign institutional investors turned net buyers, purchasing shares worth approximately Rs 3,350 crore on the day. The previous session had also seen net FII inflows of more than Rs 3,100 crore. Easing crude oil prices, which traded near $105 per barrel, and continued positive corporate earnings reports supported the move. Market participants also noted expectations around long-term capital gains treatment for foreign investors.

Heavyweight banks and FMCG names led the rally. Hindustan Unilever rose more than 4 percent, Bharti Airtel gained about 4 percent, and HDFC Bank advanced more than 3.5 percent. Asian Paints, UltraTech Cement and ICICI Bank also finished among the top gainers. On the downside, Power Grid, State Bank of India and a handful of energy and metal names ended lower.

The four-day stretch marks the strongest consecutive advance for the Nifty in seven months. The index has recovered from levels near 23,000 earlier in the period. Broader market capitalisation of NSE-listed firms increased by roughly Rs 4.7 lakh crore on the session, taking the total to about Rs 483 lakh crore. India VIX, the volatility gauge, edged higher to 15.67.

Trading opened with the Sensex already up more than 500 points and the Nifty above 23,500. Buying remained steady through the afternoon. Sectoral strength was most pronounced in FMCG, which rose more than 3.5 percent, followed by realty and auto. Private banks also contributed. The move occurred against a backdrop of ongoing geopolitical uncertainty in the Middle East, yet lower oil prices and domestic earnings momentum outweighed those concerns for the session.

Corporate results for the September quarter have continued to arrive. Several large-cap names have reported better-than-expected numbers in recent days, reinforcing the view that earnings growth remains intact even as global growth indicators stay mixed. The return of foreign buyers after a period of outflows has been the clearest near-term catalyst. Whether the inflows persist will depend on the trajectory of US yields, the path of crude, and the outcome of the American midterm elections that were under way on the same day.

For now the technical picture has improved. Both indices closed at session highs and at levels last seen in early September. The next resistance zones for the Nifty sit near 23,900-24,000. Support is now expected in the 23,500-23,600 band. Traders will watch whether FIIs remain net buyers in the coming sessions and how crude prices behave after the latest US strikes and Iranian responses in the Strait of Hormuz.