Indian Stock Market Surges Ahead of Diwali, Sensex Rises by 900 Points

Mumbai, November 2 (Daily Kiran) : The Indian stock market experienced a robust opening on Monday, November 2, driven by strong domestic and global signals ahead of the Diwali festival. Hopes for progress in U.S.-Iran negotiations led to a significant drop in crude oil prices, boosting the major benchmark indices, Sensex and Nifty, by over 1%.

The BSE Sensex opened at 75,178.24, up 718.71 points or 0.96% from its previous close of 74,459.53. Meanwhile, the NSE Nifty 50 started at 23,222.30, gaining 169.2 points or 0.73% from its last closing figure of 23,053.10.

Throughout the trading day, the Sensex reached a peak of 75,366.06, marking an increase of 906.53 points or 1.21%. The Nifty also climbed to 23,301.25, up 248.15 points or 1.07%.

In broader markets, the Nifty Midcap Index saw a rise of 0.83%, while the Nifty Smallcap Index increased by 0.63%. Sector-wise, the energy sector showed the strongest performance, with the Nifty Oil and Gas Index surging over 2%. Additionally, Nifty Auto and Nifty IT recorded gains of 0.77% and 0.51%, respectively. However, the real estate and media sectors faced slight declines, with Nifty Realty down by 0.74% and Nifty Media down by 0.06%.

Market experts indicate that clear signs of a bullish trend are emerging in the Indian markets, supported by positive factors on both domestic and global fronts. The decline in Brent crude prices from last week’s high of $118 per barrel to approximately $110 is seen as a relief for the market. Additionally, a drop in the U.S. 10-year bond yield to 4.93% is bolstering investor sentiment.

Analysts suggest that India might indirectly benefit from a slowdown in global investment themes related to artificial intelligence. Following a 2.8% drop in the Nasdaq last week, investors are shifting their focus to other markets, with India expected to gain from this trend.

On the domestic front, strong indicators are also emerging. The banking sector reported a credit growth of 17.94%, and record GST collections in October signal robust economic momentum in India. There is speculation that significant changes to the long-term capital gains tax structure may be included in the upcoming central budget, with some analysts believing that the market has already begun to price in these possibilities.

From a technical analysis perspective, the Nifty’s RSI has reached 53.50, above its average reading of 45.97, indicating market strength. The put-call ratio stands at 1.24, suggesting a positive trend in the derivatives market. The Nifty is expected to find major support between 22,900 and 23,000, while the nearest resistance level is anticipated between 23,200 and 23,250. Experts believe that if the index remains above the 50-day EMA, bullish momentum could strengthen further.

In global markets, Asian stocks showed some weakness, while crude oil prices continued to soften. Brent crude traded down nearly 3% at $109.97 per barrel, and West Texas Intermediate (WTI) fell about 3% to $100.81 per barrel.

On Wall Street, stocks closed in negative territory on Friday, with the Nasdaq experiencing its largest single-day drop since June 5, following disappointing earnings from Intel and Amazon and growing concerns over heavy investments in AI. Despite this, Indian markets opened positively, buoyed by domestic strength.