Sensex surges 718 points at open on 2 November as oil, auto, IT stocks rally
Synopsis
Indian markets shrugged off a Nasdaq sell-off and mixed Asian cues to open nearly 1% higher on 2 November, led by a 2% surge in oil and gas stocks. Cooling Brent crude, easing US bond yields, and LTCG tax abolition hopes are converging into what analysts are calling a clear bull turnaround signal.
Key Takeaways
Sensex opened 718.71 points or 0.97% higher at 75,178.24 on 2 November .
Nifty50 gained 169.20 points or 0.73% to open at 23,222.30 .
Nifty Oil & Gas led sectoral gains, surging more than 2% ; Nifty Realty was the top loser at -0.74% .
Brent crude eased 3% to $109.97 , down from last week's high of $118 , relieving pressure on India's import bill.
Domestic credit growth of 17.94% and strong October GST collections reinforced the bullish domestic case.
Analysts flagged rising LTCG tax abolition expectations as an additional market catalyst ahead of the Union Budget.
Indian equity benchmarks kicked off the trading week on a strong note on Monday, 2 November, with the BSE Sensex jumping 718.71 points or 0.97% to 75,178.24 and the Nifty50 climbing 169.20 points or 0.73% to 23,222.30 at the open — a roughly 1% surge each — despite mixed signals from global markets. The rally was led by energy, auto, and information technology stocks, pointing to a broad-based recovery in domestic sentiment.
Sector Breakdown: Who Led, Who Lagged
Nifty Oil & Gas was the standout performer, surging more than 2% and anchoring the broader advance. Nifty Auto added 0.77% and Nifty IT gained 0.51%, suggesting buyers returned selectively to cyclical and export-linked sectors. On the losing side, Nifty Realty shed 0.74% and Nifty Media slipped 0.06%, indicating pockets of caution in rate-sensitive segments.
Global Cues: A Mixed But Manageable Picture
The external backdrop was not uniformly supportive, yet markets interpreted it favourably. Brent crude fell approximately 3% to $109.97 per barrel, retreating from last week's high of $118, while US West Texas Intermediate (WTI) slid about 3% to $100.81. The easing of crude prices is notable relief for India, a major oil importer.
The US 10-year bond yield also eased to 4.93%, reducing the pressure on emerging-market capital flows. Meanwhile, Asian shares traded lower on the day, underscoring the mixed nature of global cues.
On Wall Street, the Nasdaq posted its steepest single-session fall since 5 June last Friday — dropping 2.8% — after disappointing results from Intel and Amazon intensified concerns over heavy AI-infrastructure spending. Analysts noted that the weakening of the AI trade is, counterintuitively, a tailwind for India, which is widely regarded as a counter-AI play in global portfolio allocations.
Domestic Fundamentals Supporting the Rally
Market experts pointed to robust domestic data as an equally important driver. Credit growth of 17.94% and strong GST collections in October were cited as evidence of a resilient economy gathering momentum. These figures suggest underlying demand holds firm even as global growth signals remain uncertain.
Analysts also flagged rising expectations around a significant restructuring — possibly abolition — of the Long-Term Capital Gains (LTCG) tax in the upcoming Union Budget. According to market observers, equity benchmarks appear to have begun pricing in this possibility, adding a policy-driven dimension to the bull case.
Technical Setup and Key Levels to Watch
On the derivatives and technical front, the Nifty RSI improved to 53.50, above its average of 45.97, signalling improving momentum. The Put-Call Ratio (PCR) stood at 1.24, indicating a positive derivatives setup that tilts in favour of bulls. Immediate support is placed at 22,900–23,000, while resistance is seen at 23,200–23,250. A sustained close above the 50-day Exponential Moving Average (EMA) would, according to analysts, further confirm the recovery trend.
With crude cooling, bond yields retreating, and domestic macro data holding firm, market observers say the conditions for a continued recovery are in place — though global volatility around AI earnings and US rate expectations remains a risk to watch.
Point of View
But the bull case rests on several assumptions running in parallel — cooling crude, a softening US yield, an AI trade unwind that benefits India, and a Budget that may abolish LTCG. Any one of these reversing could quickly flip the narrative. More structurally, markets pricing in LTCG abolition before a Budget is announced is a speculative bet, not a fundamental re-rating. The Nasdaq's 2.8% fall on AI earnings misses is the underreported risk: if global tech sentiment worsens, FII flows into India — which have driven much of the rally — could reverse without warning. The technical setup looks constructive, but it is holding just below key resistance at 23,200–23,250, and a failure to break above the 50-day EMA sustainably would expose the 22,900 support quickly.
NationPress
2 Nov 2026
Frequently Asked Questions
Why did the Sensex and Nifty rise on 2 November despite mixed global cues?
The Sensex and Nifty opened about 1% higher on 2 November as a fall in Brent crude prices, easing US bond yields, and strong domestic data — including 17.94% credit growth and robust GST collections — outweighed weak Asian markets and a Friday Nasdaq decline. Buying in energy, auto, and IT stocks drove the advance.
Which sectors performed best on the opening on 2 November?
Nifty Oil & Gas was the top sectoral gainer, rising more than 2%. Nifty Auto added 0.77% and Nifty IT gained 0.51%. Nifty Realty was the biggest loser, declining 0.74%.
How did global markets affect Indian equities on 2 November?
Global cues were mixed: Brent crude fell 3% to $109.97 per barrel, and the US 10-year bond yield eased to 4.93%, which supported Indian markets. However, the Nasdaq fell 2.8% on Friday due to disappointing Intel and Amazon earnings, and Asian shares traded lower on the day.
What is the significance of LTCG tax abolition expectations for the market?
Analysts say rising expectations that the government may abolish or significantly restructure the Long-Term Capital Gains tax in the upcoming Union Budget are acting as an additional sentiment booster. Markets appear to have begun factoring in this possibility, according to market observers, though no official announcement has been made.
What are the key technical levels for Nifty to watch?
The Nifty RSI stood at 53.50, above its average of 45.97, with a PCR of 1.24 indicating a positive derivatives setup. Immediate support is placed at 22,900–23,000 and resistance at 23,200–23,250. A sustained move above the 50-day EMA is seen as the next confirmation of a sustained recovery.
