Indian stock markets staged a strong rally on Monday, November 2, with the Sensex climbing to its highest level in nearly two months, powered by a sharp surge in Reliance Industries shares, falling global crude oil prices and expectations of tax concessions for equity investors.
The BSE Sensex jumped 1.66% to close at 75,692.78, while the NSE Nifty 50 advanced 1.68% to 23,440.80. Both indices have gained approximately 3.3% over the past three trading sessions, reflecting a recovery in investor confidence despite continuing global uncertainties.
Reliance Industries emerged as the biggest driver of Monday's rally, with its shares soaring 11.6%, their strongest single-day performance since April 2020.
The conglomerate accounted for nearly half of the Nifty 50's gains, highlighting its considerable influence on India's benchmark indices.
The rally followed better-than-expected September-quarter financial results. Reliance reported a record consolidated profit after tax of ₹29,550 crore for the second quarter of FY27, representing a 33.8% year-on-year increase.
Quarterly revenue reached a record ₹3.62 lakh crore, while EBITDA climbed 23.9% to ₹62,409 crore. Its oil-to-chemicals business delivered particularly strong performance, with EBITDA rising 67.9% to ₹25,203 crore.
Despite Monday's spectacular rally, Reliance shares remain approximately 17.2% lower for 2026, indicating the extent of their earlier underperformance.
Another major factor supporting Indian equities was the retreat in international crude oil prices.
Brent crude declined to around $109 per barrel from a six-month high of $118 on Friday, following continued diplomatic negotiations involving Iranian and Qatari officials aimed at ending the US-Israeli war on Iran.
Investor optimism received another boost from reports that the Securities and Exchange Board of India (SEBI) has recommended removing long-term capital gains (LTCG) tax for foreign portfolio investors.
SEBI has also proposed relief for domestic mutual fund investors switching between schemes after holding their investments for more than one year.
Currently, eligible long-term equity gains are taxed at 12.5%, while short-term gains attract a 20% tax.
The proposals come as foreign investors have withdrawn approximately $31 billion from Indian equities during 2026.
Any reduction in capital gains taxation could improve India's attractiveness to overseas investors and encourage domestic investors to remain invested. However, the recommendations are not binding, and the Union government must take the final decision.
The rally extended across most sectors, with 13 of the 16 major sectoral indices closing higher. The Nifty Midcap index advanced 1.2%, while the Smallcap index gained 0.7%.
Automobile shares rose 1.3%, supported by encouraging October sales figures. Maruti Suzuki gained 2.4%, while Tata Motors Passenger Vehicles advanced 2.6%.
Information technology stocks, however, declined 0.5% as investors booked profits following the sector's nearly 18% rally in October.
Resilient GST collections, automobile sales and bank credit growth also supported sentiment.
