Why is stock market up today? Bulls are back with Monday Motivation as Sensex, Nifty soar over 1% each | Top 4 reasons
The domestic benchmark indices, Nifty 50 and Sensex, jumped over 1% on Monday, 2 November, signalling a potential turnaround in Indian equities amid improving global sentiment and supportive domestic cues.
The benchmarks gained on Monday as oil prices retreated from a six-month high amid efforts to end the war in Iran. Gains in Reliance Industries, following stronger-than-expected September-quarter earnings, also lifted market sentiment.
The Nifty 50 opened 0.71% higher at 23,215.85, while the Sensex started the session with a gain of 0.88% at 75,113.01. Both benchmark indices extended their gains as the session progressed, eventually rising by more than 1% each.
Oil prices retreated from a six-month high amid talks to end the Iran war, offering relief to investors amid concerns over elevated energy costs and their impact on India's economy.
Brent crude prices fell to around $110 per barrel on Monday, retreating from a six-month high of $118 recorded on Friday, as hopes of a diplomatic breakthrough in the Iran conflict eased concerns over potential supply disruptions.
Oil prices declined more than 3% after Iranian and Qatari officials held talks for a third consecutive day to push for an agreement to end the US-Israeli war on Iran, Reuters reported.
Brent crude futures dropped $3.68, or 3.2%, to $109.75 a barrel by 0407 GMT, while US West Texas Intermediate (WTI) crude fell $3.43, or 3.3%, to $100.69 a barrel.
Brent ended October at its highest level in six months amid fears that the conflict between the US and Iran could escalate again following Tuesday's US midterm elections, raising concerns over global oil supplies.
Reliance Industries shares advanced after the company reported stronger-than-expected September-quarter earnings, providing a significant boost to the benchmark indices.
Reliance Industries share price surged 6% on Monday, supported by strong performance in its oil-to-chemicals (O2C) business and steady growth in its telecom arm, Jio. The performance helped offset weakness in the retail business and lifted investor confidence in the conglomerate's earnings outlook.
The stock was trading at ₹1,232.50 as of 9:34 AM IST and was on track to record its biggest single-day gain since January 2024, if the momentum continued. Reliance was the top gainer in the Nifty 50,up 0.97% at the time.
The company, led by billionaire Mukesh Ambani, reported a 40.6% year-on-year jump in consolidated net profit to ₹25,548 crore for the September quarter, beating analysts' estimates of ₹21,419 crore. Stronger refining and petrochemical margins drove the earnings growth.
Strong domestic growth momentum, reflected in robust Q2 earnings, 17.94% credit growth and a 22.9% increase in GST collections, has further supported market sentiment.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said domestic economic indicators are also lending support to the market rally. Credit growth of 17.94% and robust GST collections in October point to a resilient economy that is gaining momentum.
He added that rising expectations of a significant overhaul of the long-term capital gains (LTCG) tax regime in the upcoming Union Budget, potentially including its abolition, have emerged as another positive trigger for equities. According to Vijayakumar, markets appear to have started pricing in this possibility. “For now, it is advantage bulls,” he said.
Nasdaq was down by sharp 2.8% last Friday turning out to be positive for India, which is a counter AI trade.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the weakening of the AI trade was perhaps more significant than the positive external cues for Indian markets. The sharp sell-off in AI-linked stocks dragged the Nasdaq down 2.8% last Friday. He noted that the unwinding of the AI trade could benefit India, which is widely viewed as a counter-AI investment play.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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HomeMarketsStock MarketsWhy is stock market up today? Bulls are back with Monday Motivation as Sensex, Nifty soar over 1% each | Top 4 reasons
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