Indian shares jump 1.7% as Reliance rallies, bond yields fall

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

iStock.com

By Dehuti Jani

November 2, 2026 at 12:25 PM IST

The Indian equities benchmark rose for a third consecutive session on Monday, with the Sensex climbing to a near two-month high as strong Reliance Industries earnings, falling crude oil prices and hopes of tax relief on equity investments lifted sentiment.

The Nifty50 gained 1.68% to 23,440.80, while the Sensex advanced 1.66%, or 1,233.25 points, to 75,692.78. Both benchmarks have risen 3.3% over three sessions. Reliance Industries surged 11.6% after reporting better-than-expected quarterly profit, marking its biggest single-day gain since April 2020 and contributing about half of the Nifty's advance. Tata Steel and JSW Steel were also among the top gainers.

Thirteen of the 16 major sectoral indices rose, led by oil and gas and metals, while IT and media stocks declined. The Nifty MidCap 100 and SmallCap 100 gained 1.19% and 0.71%, respectively.

Market sentiment was also supported by hopes of tax relief after Reuters reported that the markets regulator had recommended removing long-term capital gains tax for foreign investors and domestic mutual fund investors switching between existing schemes. Brent crude fell to around $109 a barrel from $118 on Friday as Iranian and Qatari officials continued talks aimed at ending the US-Israeli war on Iran.

The rupee ended nearly flat at 94.90 per US dollar, compared with 94.95 in the previous session, giving up early gains despite lower oil prices and a weaker dollar. Traders remained cautious ahead of Tuesday's US midterm elections.

Indian government bonds yields were down today as crude oil prices declined further, prompting traders to cover short positions and build fresh long bets. The yield on the benchmark 6.94%, 2036 bond fell nearly 10 basis points to 7.3154% from 7.4139% on Friday.

Top Movers of the Day

Reliance Industries surged 11.60% to close at 1,300 rupees, acting as the primary engine for the broader benchmark indices. The stock attracted massive institutional buying after reporting a record quarterly profit that boosted its market valuation by over one lakh crore rupees.

Tata Steel shares advanced 5.83% to settle at 175.37 rupees. Investor buying accelerated as the market positioned itself ahead of Tata Steel's upcoming second-quarter financial results for fiscal year 2026–27.

JSW Steel climbed 5.13% to close at 1,309.90 rupees, tracking the positive momentum across the broader metal sector. Nomura maintained a positive outlook on the Indian steel sector and retained a 'Buy' rating on JSW Steel, highlighting that domestic steelmakers are well-positioned to benefit from recent price adjustments that comfortably absorb raw material cost pressures.

Shriram Finance gained 4.88% to end at 863.35 rupees, standing out as a bright spot in the financial services space. Market participants aggressively bought the stock following recent consolidations, driving it significantly higher on strong turnover.

Coal India rose 4.88% to close at 408 rupees, benefiting from defensive sector rotation by domestic funds. Investors favoured the stock due to its reliable dividend yield and a positive outlook on sustained domestic energy demand.

Infosys fell 2.03% to settle at 1,161 rupees, leading the decline across the broader information technology sector. The stock faced intense selling pressure and localized profit-booking as investors turned cautious on tech exporters.

ICICI Bank declined 0.76% to close at 1,387.40 rupees, giving up some of its recent gains. Market participants opted to trim their exposure to the banking major, leading to steady intraday unwinding of long positions.

HDFC Life Insurance dropped 0.50% to end at 522.25 rupees, due to regulatory pressure from the IRDAI over commission structures and expenses of management limits and profit booking in the market heavyweights.

Kotak Mahindra Bank slipped 0.70% to close at 458.35 rupees, recording a largely subdued trading session. Broad-based weakness and a lack of fresh institutional catalysts kept the stock under mild but persistent downward pressure.

Axis Bank decreased 0.66% to settle at 1,209 rupees as investors recalibrated their portfolios within the private banking space. Localized selling and sector-specific profit-taking prevented the lender from participating in the broader market's upward rally.

Futures & Options
The Nifty November 2026 futures contract closed at 23,415.30, a discount of 25.50 points to the Nifty 50's cash market close of 23,440.80. The benchmark index surged 387.70 points, or 1.68%, during the session.

The NSE India VIX, which gauges the market's expectation of near-term volatility, rose 1.40% to 15.52. HDFC Bank, Reliance Industries and Dixon Technologies (India) were the most-traded individual stock futures contracts in the NSE's futures and options segment. November 2026 F&O contracts will expire on November 23.

Bonds
Indian government bonds rallied for a second consecutive session on Monday as crude oil prices declined further and hopes of de-escalation in West Asia lifted sentiment. Traders covered earlier short positions and placed fresh long bets, while some also squared off previous losses. The benchmark 6.94%, 2036 bond yield fell nearly 10 basis points to 7.3154% from 7.4139% on Friday, marking its biggest single-day decline since April 8.

Brent crude prices slipped towards $108 a barrel from around $110 in early trade. Some traders expect the 10-year yield to fall further towards 7.25% if current levels sustain, reversing part of the nearly 50-basis-point rise recorded in October. However, market participants are likely to await the outcome of Tuesday's US midterm elections and any further US military action against Iran before taking fresh positions.

Forex
The Indian rupee ended nearly unchanged at 94.90 per US dollar on Monday, giving up early gains despite a weaker greenback and lower crude oil prices. The currency had closed at 94.95 on Friday.

Brent crude fell more than 4% to $108.30 per barrel, its lowest level since October 21, on hopes of a deal to end the Iran war. The dollar index declined around 0.5% to 101.5 as investors remained cautious ahead of Tuesday's US midterm elections, which will determine whether Democrats can wrest control of Congress from President Donald Trump's Republican Party.

Crypto
The cryptocurrency market capitalisation stood at around $2.62 trillion on Monday, showing a modest recovery after last week's sharp sell-off linked to the reported $6.3 billion Binance security breach. Bitcoin rose 1.09% over the previous 24 hours to around $78,070, accounting for 58.25% of the total market.

Ethereum gained 0.82% to around $2,284 as digital assets stabilised amid cautious investor sentiment. However, significant outflows from US spot Bitcoin exchange-traded funds and uncertainty ahead of Tuesday's US midterm elections continued to weigh on risk appetite.

US Stock Futures
US stock futures were largely steady on Monday, with the 10-year yield holding around 4.92%. The two-year yield edged up to 4.59%, while the five-year yield stood at 4.72%. The 30-year yield eased to 5.28%-5.31%.

Trading remained cautious ahead of the US midterm elections, key labour market data and Wednesday's quarterly refunding announcement. Lower crude oil prices and comments from US officials signalling interest in diplomatic solutions to regional conflicts eased some inflation concerns, while investors also assessed the Treasury's guidance on long-term debt issuance and bond buybacks.

US Treasury Notes
US Treasury yields surged on Monday, with the 10-year yield climbing to around 5.12% amid heavy selling of longer-dated government debt. Stronger-than-expected US business activity data, persistent inflation concerns and rising oil prices fuelled expectations of interest rates remaining higher for longer. The two-year yield edged lower in comparison, contributing to a bear-steepening of the yield curve.

Investors remained cautious as markets reassessed the Federal Reserve's policy outlook and priced in a more hawkish interest-rate trajectory amid persistent inflationary pressures.

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Indian shares jump 1.7% as Reliance rallies, bond yields fall