Indian equity markets extended their winning streak for the fourth consecutive session on Tuesday, November 3, with the Sensex surging 1,225 points and the Nifty closing above 23,800.
Strong corporate earnings, renewed foreign institutional investor (FII) buying and a retreat in crude oil prices from recent highs boosted sentiment, helping benchmark indices reach their highest levels in nearly two months.
The BSE Sensex jumped 1,225.07 points, or 1.62%, to settle at 76,917.85. The NSE Nifty 50 advanced 370.05 points, or 1.58%, to close at 23,810.85. Both indices ended at their day's highs.
Over the past four sessions, the Sensex has gained 3,671.82 points, or 5%, while the Nifty has climbed 1,112 points, or 4.89%.
Private banks, financial services, FMCG, automobiles, cement and realty stocks attracted strong buying interest. However, metal companies and public sector banks faced selling pressure.
Among Sensex constituents, Hindustan Unilever, Bharti Airtel, HDFC Bank, Asian Paints, UltraTech Cement and ICICI Bank were prominent gainers. Power Grid, State Bank of India, NTPC, Tata Steel and Trent ended among the laggards.
Broader markets also advanced, although gains were comparatively modest. Midcap stocks rose around 1.06%, while smallcaps gained 0.31%, reflecting wider participation in the recovery.
Better-than-expected September-quarter results have emerged as a major catalyst.
According to global brokerage Nomura, 134 companies in its BSE 200-plus coverage universe reported normalised profit-after-tax growth of 34% year-on-year, exceeding consensus estimates by 18%.
The brokerage expects improving earnings visibility and relatively attractive valuations to support foreign investor interest.
Financial stocks received additional support from expectations of stronger credit growth. HSBC raised its forecast for Indian bank lending growth in FY27 to 18% from 14%, citing improved earnings prospects.
Foreign investors have started returning to Indian equities after sustained selling. FIIs purchased shares worth ₹3,114.68 crore on Monday, providing additional momentum to the market recovery.
Lower crude oil prices have also eased concerns about India's import bill, inflation and corporate margins.
Brent crude, which had declined sharply in the previous session, recovered modestly to around $106 per barrel on Tuesday.
Market participants are closely monitoring developments in global technology stocks, crude oil prices and the US midterm elections, which could influence investor sentiment.
Expectations of a possible reduction in long-term capital gains tax for foreign investors have also contributed to market optimism, although no policy change has been confirmed.
On the technical front, SBI Securities identifies 23,650–23,680 as an important support zone for the Nifty. Sustaining above 23,650 could help the index move towards 23,930–23,950 in the near term.
However, renewed crude price volatility, geopolitical developments and uncertainty over foreign fund flows remain key risks to the rally.