Markets extend gains for fourth day; FPI buying highest in a year

Nifty up 1.6% on favourable earnings, festival demand

Even a slight uptick in Brent crude prices should ideally be treated as a threat to Indian stock prices. After all, oil is an important raw material. But even as Brent prices rose 2 per cent to $105, Indian stocks continued to rally for the fourth consecutive session.

 

Between 4 pm on Monday and 9 am on Tuesday, when the Indian market was not trading, Brent prices fell from $108 to $104. Between 9 am and 4 pm on Tuesday, Brent rose to $105.29.

 

Indian investors are reading the small gain as a short-term development and expect peace to dawn on the Strait of Hormuz, even as unconfirmed reports emerged of a US strike on Qeshm Island in the Persian Gulf.

 

 

The Nifty closed 1.58 per cent higher, with the Nifty Capital Markets index returning 4.5 per cent in a single day. This was also driven by traders betting that foreign institutional investors (FIIs) are returning and that the government will take a positive decision on reducing or abolishing the long-term capital gains (LTCG) tax. 

 

FIIs made net purchases of ₹6,837 crore worth of Indian equities on November 3, their biggest single-day net buying since October 2025. Domestic institutional investors (DIIs), meanwhile, were net sellers, offloading ₹3,679 crore worth of equities. The previous occasion when FIIs made a larger net purchase was October 28, 2025, when they bought ₹10,340 crore worth of equities. DIIs were also net buyers on that day, purchasing ₹1,082 crore worth of shares.

 

 "The Indian stock market witnessed a strong rally today, with the Nifty gaining 1.58% and the Sensex rising 1.62%. The positive sentiment was supported by easing crude oil prices, improved global cues, continued foreign investor buying and optimism around corporate earnings," said Somil Mehta, head of retail research, Mirae Asset Sharekhan.

 

The bourses rallied for the fourth consecutive day as consumer demand picked up ahead of Diwali, with all broad-market and sectoral indices ending in the green, except for Nifty Metal, Nifty PSU Bank, and the Nifty MidSmall IT & Telecom index.

 

“Nifty has moved over 4 per cent in the past four days. The rally was supported by Monday’s global correction, favourable earnings reported by companies including fast-moving consumer goods (FMCG) giants ITC and Marico, easing crude oil prices, continued foreign fund inflows, and optimism around a potential review of LTCG taxation for foreign investors,” said Siddhartha Khemka, head of research for wealth management at Motilal Oswal.

 

 "FMCG stocks were among the biggest gainers, with the Nifty FMCG index rising 3.65%. Lower crude oil prices are positive for FMCG companies as they reduce input costs and support profit margins. Strong quarterly results from companies such as Marico also improved investor confidence. Expectations of better consumption demand further supported the sector," Mehta added.

 

The benchmark Nifty 50 closed 1.58 per cent higher at 23,810.85, while the Sensex gained 1.62 per cent to close at 76,917.85. The Nifty FMCG index (up 3.65 per cent) and the BSE Fast Moving Consumer Goods index (up 3.38 per cent) emerged as the top gainers, followed by real estate, private banks, and financial services. Public-sector bank stocks were the worst performers, with the Nifty PSU Bank index down 1.27 per cent and the BSE PSU Bank index down 1.33 per cent.

 

“In the FMCG sector, there is definitely some impact of the festival demand. The demand has been better compared to last year, but largely there are still cost pressures, lack of strong rural demand, and a potentially continuing El Niño impact, which could extend to next year. So, that will keep rural demand under check,” added Khemka, who rates the sector ‘neutral’ to ‘underweight’.

 

The Nifty 50’s indicative price swung sharply during the closing auction session (CAS), jumping as much as 2.61 per cent at one point, compared with a gain of 1.24 per cent before the session began. It then pared its gains to settle 1.58 per cent higher at 23,810.85, above its regular session peak of 23,741.65 (up 1.28 per cent).

 

Bharti Airtel rose 3.8 per cent and HDFC Bank 3.6 per cent, adding ₹46,900 crore and ₹39,300 crore to their respective market capitalisations, while ICICI Bank gained 2.7 per cent. The three stocks accounted for nearly half of the ₹2.4 trillion rise in the market value of Nifty 50 companies. Only 11 of the 50 Nifty stocks fell.

 

BSE topped the gainers’ list with a 5.03 per cent rise, followed by Nestlé India (4.47 per cent), Tata Consumer Products (4.29 per cent), and Asian Paints (3.99 per cent). Titan Company and ITC were also among the index’s top gainers.

 

The Nifty Capital Markets index rose 4.53 per cent, the biggest sectoral gain, with Multi Commodity Exchange of India up 7.4 per cent, Angel One 7 per cent, Central Depository Services 5.4 per cent, 360 One WAM 5.3 per cent, and BSE 5 per cent. These companies stand to gain from higher trading volumes. The Nifty FMCG index rose 3.65 per cent, with Marico jumping 10 per cent after announcing its 2026-27 second-quarter (July-September/Q2) results and Britannia Industries gaining 6.4 per cent.

 

Only one-fifth of the stocks ended in the red, with power, banking, and oil and gas stocks leading the declines. Power Grid Corporation of India led the losers with a 3.04 per cent fall, followed by State Bank of India (1.70 per cent) and Oil and Natural Gas Corporation/ONGC (1.13 per cent).

 

Broader indices ended higher but lagged the benchmark. The Nifty 100 and Nifty 500 gained 1.47 per cent and 1.25 per cent, respectively, while the Nifty Midcap 100 rose 1.06 per cent. Smallcaps trailed, with the Nifty Smallcap 250 up 0.42 per cent and the Nifty Smallcap 100 up 0.31 per cent.

 

Companies that benefit most from lower oil prices were among the winners. Asian Paints, whose raw materials are oil-linked, rose 3.99 per cent, InterGlobe Aviation gained 2.1 per cent, and Indian Oil Corporation 3 per cent. Oil producers ONGC and Oil India, which earn more when crude prices rise, fell.

 

The options market was dominated by the expiring Nifty contract. The 23,700 call was the most-traded option of the day, changing hands 34.4 million times, with ₹8,360 crore in premiums. Its price rose from ₹4 on Monday to as much as ₹111 as the index climbed past 23,700.

 

Traders have shifted their bets higher. For the next weekly expiry on November 9, the largest Nifty call positions are at 24,000 and 24,500, while the largest put positions are at 23,000 and 22,000. Open interest in Nifty futures fell 7.1 per cent as the index rose, suggesting that traders who had bet on a fall were closing out their positions.

 

"Going forward, markets may remain positive in the near term, but some profit booking cannot be ruled out after the recent rally. Ahead of Diwali, global developments, crude oil prices, foreign investor flows and corporate earnings will remain key factors. Investors should remain selective and focus on quality stocks," Mehta added.