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Reliance Fuels Indian Market Rally to Record Highs
2 Nov
Summary
- Reliance Industries' strong Q2 results led to its biggest single-day gain since April 2020.
- Indian markets extended their winning streak, boosted by easing crude oil prices.
- October GST collections saw the fastest growth in over four years, reinforcing consumption confidence.
Indian equity markets concluded Monday with their third consecutive winning session, propelled by a strong performance from Reliance Industries and a retreat in crude oil prices. The BSE Sensex closed up 1,232.47 points at 75,692, while the Nifty50 settled 387.70 points higher at 23,440.80.
Reliance Industries recorded its most substantial single-day gain since April 2020, surging 11.60% following better-than-expected second-quarter financial results. This contributed significantly to the Nifty's overall advance, reflecting positive corporate earnings.
Supporting the market rally, Brent crude oil declined approximately 4% to around $108 a barrel. This easing was attributed to diplomatic discussions aimed at de-escalating the US-Iran conflict. Domestically, October Goods and Services Tax (GST) collections rose 23% year-on-year to ₹2.31 lakh crore.
Sectoral performance was broad-based, with Nifty Oil & Gas leading gains, up nearly 6%. Metal and Auto indices also showed strength. Conversely, Nifty IT and Nifty Media were among the few sectors closing in negative territory.
Corporate earnings have generally exceeded expectations, with sales, EBITDA, and PAT growing robustly year-on-year. Nifty EPS estimates for FY27 and FY28 have been revised upward, indicating a positive outlook for earnings growth.
The Indian rupee appreciated to around 94.70-94.90 per dollar, supported by lower crude prices and a softer dollar ahead of US midterm elections. Market participants are now focused on upcoming US labor market data and the outcome of the US midterm elections for further direction.
