Nifty, Sensex Surge At Pre-Open Pointing To A Positive Start After Reliance Results

Mumbai, November 2: Indian shares surged at pre open signalling a positive start as heavyweight Reliance Industries reported higher than expected profit and oil eased on diplomatic progress in the Middle East. 

Nifty 50 rose 0.7% and Sensex advanced 0.8% at pre open.  

Foreign portfolio investors (FPIs) purchased Indian equities worth Rs 3,600 crore on Friday, according to provisional exchange data, marking their sixth session of net buying in the past 10 trading sessions. The renewed inflows suggest a tentative improvement in foreign investor sentiment following a prolonged selloff in Indian equities through 2026.  

Domestic benchmarks also snapped a two-month losing streak in October, with the Nifty 50 and Sensex gaining 1.9% and 2.7%, respectively. The recovery was supported by IT stocks, resilient corporate earnings and expectations of potential relief on capital gains taxation.  

On the earnings front, Reliance Industries, India’s largest listed company by market capitalisation, reported a 40.6% year-on-year jump in quarterly net profit, beating market expectations on the back of strong performances in its energy business and digital services arm Jio Platforms.  

Jio Platforms, which made a blockbuster stock market debut last week to become India’s second-largest listed company by market capitalisation, posted a 13.7% increase in quarterly net profit.  

Automobile stocks will remain in focus after major manufacturers reported their October sales figures. Maruti Suzuki India, the country’s largest carmaker, posted a nearly 21% increase in total sales.  

Bharat Electronics reported a nearly 20% year-on-year rise in consolidated net profit for the September quarter, while revenue grew 26.5%.  

Meanwhile, Sun Pharmaceutical Industries is likely to be in focus after drug regulators directed the company to suspend manufacturing, sale and distribution of ophthalmic products produced at its Assam facility. The action followed the identification of deficiencies in the facility’s quality management system, according to documents reviewed by Reuters. 

Asia Mixed 

Asian markets traded mixed, with Japan’s Nikkei 225 declining 0.3%, recovering from steeper losses earlier in the session, while South Korea’s Kospi advanced 1.4%. The MSCI index of Asia-Pacific shares outside Japan edged down 0.2%, reflecting investor caution following a weak October for global equities. 

Sentiment remained subdued amid concerns over the sustainability of the AI investment boom, with the scale of capital expenditure by major technology companies and questions over future returns weighing on US technology stocks. The Nasdaq shed nearly 7% in October, its steepest monthly decline since April 2025. 

Investors are now looking towards Apple’s quarterly earnings and management commentary on iPhone 18 sales for fresh indications of demand in the technology sector. The results assume significance after Intel plunged nearly 29% on Friday, intensifying concerns over semiconductor valuations and the earnings outlook. 

US, European Futures 

US equity futures pointed to a recovery, with S&P 500 futures rising 0.4% and Nasdaq futures gaining 0.8% as investors positioned themselves ahead of Apple’s earnings. The gains followed a particularly weak October for technology stocks, with investors reassessing the returns expected from massive AI-related investments. 

A global brokerage expects capital expenditure by major cloud computing companies to nearly double to $800 billion this year before climbing further to $1.2 trillion in 2027. Meanwhile, earnings growth for S&P 500 companies is projected to moderate from nearly 30% in 2026 to 18% next year, adding to questions over equity valuations. 

European equity futures also pointed to a positive start, with EURO STOXX 50 futures gaining 0.3% and DAX futures advancing 0.2%. FTSE futures, however, remained unchanged. 

Investors will track US manufacturing activity data due later in the day and Friday’s non-farm payrolls report for fresh indications of economic momentum and the Federal Reserve’s interest rate outlook. Markets currently assign a 72% probability to a 25-basis-point rate hike in December. 

Crude Oil Prices 

Crude oil prices declined on Monday as diplomatic engagement between Iranian and Qatari officials raised hopes of progress towards ending the US-Israeli war on Iran. Brent crude futures fell 2.7% to $110.4 per barrel, while US West Texas Intermediate (WTI) crude futures declined 2.9% to $101.1 per barrel. 

The retreat provided some respite after Brent crude gained 13.6% in October. However, continued attacks on oil tankers in the Gulf underscored the risks to energy supplies and kept the broader outlook for crude prices uncertain. 

For Indian equities, lower oil prices could offer some support, given India’s dependence on imported crude and the implications of elevated energy costs for domestic inflation, the rupee and corporate margins.

Source

• Exchanges