Sensex Surges 900 Points, Nifty Crosses 23,700
Markets extend gains for fourth straight session as falling crude oil prices, US-Iran peace hopes and foreign investor buying lift sentiment
GG News Bureau
Mumbai, 3rd Nov: The Indian stock market rally continued for a fourth consecutive session on Tuesday, with benchmark indices Sensex and Nifty 50 posting strong gains as falling crude oil prices and improving global sentiment encouraged investors to return to equities.
The Sensex surged more than 900 points to cross the 76,500 mark, while the Nifty 50 advanced over 1% to move above 23,700. Bank Nifty also climbed past 55,500, reflecting broad-based buying across the domestic market.
Three factors driving the market rally
1. Sharp decline in crude oil prices
Falling crude oil prices emerged as a key trigger for the rally. Brent crude slipped below $105 a barrel after declining around 7% in the previous session.
The decline followed hopes of progress towards ending the US-Iran conflict, with diplomatic discussions involving Iran and Qatari mediators raising expectations of reduced geopolitical tensions.
Lower oil prices are particularly favourable for India, a major crude importer, as they can ease pressure on inflation, the current account and the rupee. The Indian currency was trading around the 94.70 level.
2. Hopes of US-Iran peace talks
Renewed diplomatic efforts between Washington and Tehran also improved investor confidence. Expectations of a possible easing of tensions in the Middle East helped reduce concerns about disruptions to global energy supplies.
Ponmudi R, CEO of Enrich Money, said progress on the diplomatic front had improved global risk sentiment and eased concerns over potential energy supply disruptions.
3. Foreign investor buying
Foreign institutional investor (FII) activity provided another source of support. According to BSE data, foreign portfolio investors were net buyers of Indian equities on Monday, investing ₹3,114.68 crore.
Ponmudi said improving foreign investor flows had supported domestic equities. He added that the recovery’s sustainability would depend on stable crude prices, continued overseas investor participation and further progress in diplomatic negotiations.
Sectoral trends and broader markets
The rally extended beyond the benchmark indices, with the Nifty Smallcap 100 and Nifty Midcap 100 gaining more than half a per cent each.
Among sectors, FMCG, Realty, Auto and Private Bank stocks traded higher. Metal, IT and Pharma stocks were among the key laggards.
Over the four trading sessions, the Sensex gained more than 3,400 points, or 4.68%, while the Nifty 50 advanced over 1,000 points, or 4.43%.
Nifty technical outlook
The Nifty 50 reclaimed its 100-day Exponential Moving Average (EMA), indicating an improvement in its short-term technical structure.
According to Ponmudi, a sustained move above 23,600, supported by continued buying, could open the way towards the 23,800–24,000 range.
On the downside, the 23,500–23,450 zone is expected to provide immediate support, followed by the 23,200 level. The Relative Strength Index (RSI) stood at around 63, suggesting strengthening bullish momentum.
