GIFT Nifty Jumps 110 Points, Signals Positive Start For Sensex, Nifty; Crude Oil, Iran War In Focus

GIFT Nifty Today, November 3: GIFT Nifty was trading at 23,512.5, up 110 points or 0.47%, at around 7:41 am on Tuesday, indicating a positive start for the Indian stock market. Investors will look for the Sensex and Nifty to extend Monday’s rally, although rising crude oil prices and renewed geopolitical concerns could limit gains.

In the previous session on Monday, domestic equities staged a strong rally, with the BSE Sensex jumping 1,233.25 points, or 1.66%, to close at 75,692.78, while the NSE Nifty advanced 387.70 points, or 1.68%, to settle at 23,440.80. Both benchmarks extended their gains for a third consecutive session.

The rally was led by Reliance Industries, whose shares surged 11.6% following strong September-quarter earnings. Easing

crude oil prices, renewed foreign investor buying and optimism over a possible resolution to the US-Iran conflict also supported sentiment. Expectations of potential tax relief for equity investors added to the optimism after Finance Minister Nirmala Sitharaman acknowledged concerns over foreign investor outflows and calls for greater policy support for India’s equity markets.

Speaking at the Financial Express Leadership Awards on Monday, Sitharaman said the government was listening to concerns raised by retail investors and market participants. She also highlighted India’s need for more equity capital to sustain economic growth above 7%, while acknowledging that circumstances had changed and foreign portfolio investor outflows had intensified. The comments have put the spotlight on the upcoming Union Budget and the possibility of measures to support equity investment. However, no specific tax relief was announced.

Crude Oil Prices, US-Iran Conflict in Focus

Crude oil prices rebounded in early Asian trade on Tuesday after reports that the United States had struck Iran’s Qeshm Island, raising concerns about a fresh escalation in the conflict and prolonged disruptions to oil supplies from the West Asia.

Brent crude futures rose 0.5% to $105.25 per barrel, while US West Texas Intermediate crude gained 0.5% to $96.93 per barrel. On Monday, Brent crude had settled 7.63% lower at $104.77 per barrel amid hopes of progress in diplomatic efforts to end the conflict.

The latest developments have renewed uncertainty over the outlook for energy prices. Tehran has said that contacts with Washington to end the war are continuing, following discussions with Qatari mediators that ended without a breakthrough. US President Donald Trump has also indicated that a deal with Iran remains possible, although the threat of further military action has not been ruled out.

For India, a sustained rise in crude oil prices remains a key concern because of the country’s dependence on imported energy. Higher oil prices can increase the import bill, put pressure on the rupee, complicate inflation management and weigh on corporate margins.

What Experts Say

Ponmudi R, CEO of Enrich Money, said, “Indian equity markets are likely to extend their recovery after the strong rebound in the previous session, with easing crude oil prices, amid hopes of a de-escalation in the Middle East conflict, providing additional support to investor sentiment.  However, the sustainability of the recovery will depend on global market cues, further progress in US-Iran negotiations and the broader direction of investor sentiment.”

He added that global signals remain mixed. Wall Street ended Monday’s session on a mixed note, with the Dow Jones advancing as oil prices retreated, while the S&P 500 and Nasdaq came under pressure amid concerns over escalating artificial intelligence spending and elevated technology-sector valuations. Investors are also adopting a cautious stance ahead of the US midterm elections, with the outcome likely to influence expectations surrounding fiscal policy, government spending and bond yields.

Asian markets were trading lower on Tuesday, with South Korea’s KOSPI falling more than 3% amid pressure on technology stocks and concerns surrounding AI-related investments. Japan’s Nikkei 225 remained closed for a national holiday.

Crude oil prices have pulled back sharply, with WTI crude trading around $96-97 per barrel following its steepest single-day decline in more than three months, as hopes of progress in US-Iran diplomatic negotiations improved sentiment.  Iranian and Qatari officials have reportedly held several rounds of discussions aimed at ending the conflict, with a draft proposal said to be under consideration. However, the conflict remains unresolved, and the Strait of Hormuz continues to be a critical risk to global energy supplies.

“A sustained de-escalation in geopolitical tensions and further moderation in energy prices could support the ongoing recovery. However, a breakdown in negotiations or continued weakness in global technology stocks could revive volatility, weigh on broader risk appetite and influence global capital flows,” Ponmudi said.