Indian markets staged a recovery on November 2, 2026, as foreign investors net-purchased Rs 3,115 crore in equities. The Nifty 50 climbed 1.68% to 23,440.80, supported by a 11.6% rally in Reliance Industries and cooling crude oil prices. While the single-day inflow is positive, investors remain cautious ahead of the upcoming US midterm elections.
Indian stock markets witnessed a sharp turnaround on November 2, 2026, as foreign institutional investors (FIIs) broke their recent selling streak. Foreign investors net-purchased Indian shares worth Rs 3,115 crore, a welcome shift after a difficult October where they were consistent sellers. This buying activity helped the Nifty 50 index gain 1.68%, closing the session at 23,440.80.
The rally was primarily driven by strong performance in market heavyweights. Reliance Industries saw a significant 11.6% jump following positive quarterly financial results, which provided a major push to the index. Sentiment was further improved by a 4% decline in crude oil prices, which settled near USD 108 per barrel. Lower oil prices are generally seen as a positive for the Indian economy as they help reduce import costs and inflation pressure.
While foreign investors turned buyers, domestic institutional investors (DIIs) adopted a different approach, offloading Rs 392 crore worth of shares. Sectoral performance was mixed; while the energy sector performed well, the IT sector struggled, slipping 0.9% as investors reassessed the valuations of technology stocks. On the macroeconomic front, domestic data remained robust, with GST collections rising 23% year-over-year to reach Rs 2.31 lakh crore, the fastest growth seen in over four years.
Despite the positive movement, investors should track the situation carefully. FIIs remain net sellers for the 2026 calendar year, meaning one day of buying does not necessarily indicate a permanent change in sentiment. Markets are also bracing for the US midterm elections scheduled for November 3, 2026. This event is viewed by many market analysts as a wildcard that could create sudden volatility in global markets.
Looking ahead, the market will likely focus on upcoming quarterly earnings from major financial companies, including SBI and Bajaj Finserv. These results, combined with developments regarding geopolitical tensions and global risk appetite, will be key factors for investors to monitor in the coming sessions.