Dalal Street Continues Festivities, Oil Falls 7%: Sensex Over 450 Points Up, Nifty Above 23,500

Indian equity benchmarks opened sharply higher on Tuesday, November 3, despite weakness across Asian markets and continued selling in global technology stocks. Investors are tracking the unwinding of AI-related trades, movements in crude oil prices and geopolitical developments involving the US and Iran.

The BSE Sensex jumped more than 450 points and inched closer to 76,150, while the NSE Nifty50 climbed nearly 100 points and traded above 23,500, as of 9:15 AM.

GIFT Nifty Signals Gap-Up Opening

GIFT Nifty indicated a positive start for domestic equities, with futures trading at 23,537, up 134 points, or 0.57 per cent.

At around 9:07 am, the Sensex was trading at 76,266.34, up 573.56 points, or 0.76 per cent. The Nifty stood at 23,582.90, gaining 141.95 points, or 0.61 per cent.

The upbeat opening comes as investors assess the impact of the global pullback from technology stocks, driven by concerns over the scale of capital expenditure on artificial intelligence.

Asian Markets Fall As AI Trade Unwinds

Asian equities traded lower on Tuesday as investors continued to reduce exposure to technology stocks amid concerns about heavy spending on AI infrastructure.

Japan's Nikkei 225 declined 0.33 per cent, while South Korea's KOSPI fell sharply by 2.4 per cent.

The weakness followed a mixed session on Wall Street, where technology stocks faced selling pressure even as the Dow Jones managed to close higher.

Wall Street Ends Mixed

US markets finished Monday's session on a mixed note.

The S&P 500 declined 0.5 per cent, while the Nasdaq Composite fell 1.07 per cent, reflecting weakness in technology shares.

In contrast, the Dow Jones Industrial Average gained 0.42 per cent.

Investors remain cautious about valuations and spending commitments in the AI sector, with the recent pullback weighing on broader global sentiment.

Crude Oil Prices Recover After Sharp Fall

Crude oil prices were steady in Asian trade after falling around 7 per cent on Monday. Prices edged higher on Tuesday following reports of US strikes on Iran's Qeshmi Island.

On the Intercontinental Exchange, Brent crude futures for January delivery were quoted at $104.41 per barrel, up 0.12 per cent.

Oil prices remain a key variable for Indian markets, given the country's dependence on imports. Any sustained rise could affect inflation, the current account balance and corporate costs.

Gold And Silver Futures Trade Lower

Precious metals were under pressure in the latest session.

Gold futures declined 0.38 per cent, while silver futures slipped 1.08 per cent.

Investors are assessing global risk sentiment and the outlook for financial markets as technology stocks face a pullback and geopolitical uncertainty continues to influence commodity prices.

Expert View: Nifty Could Move Towards 23,500-23,650

Shrikant Chouhan, Head of Equity Research at Kotak Neo, said benchmark indices staged a strong rally in the previous session, with the Nifty rising 388 points and the Sensex gaining 1,233 points. The Oil and Gas index led sectoral performance, climbing nearly 6 per cent, while select IT and media stocks saw profit booking despite the broader advance.

From a technical perspective, Chouhan noted that the market opened with a gap-up and maintained its positive momentum through the session. The bullish candle on the daily chart and the continuation pattern on intraday charts point towards the possibility of further gains.

He said the short-term trend remains positive, though traders may consider a strategy of “buying on dips and selling on rallies” amid volatility.

On the downside, he identified 23,300 and 23,200 on the Nifty, along with 75,300 and 75,000 on the Sensex, as key support levels.

On the upside, the indices could move towards 23,500-23,650 on the Nifty and 76,000-76,150 on the Sensex. However, a fall below 23,200 on the Nifty or 75,000 on the Sensex could weaken the near-term momentum and lead to a retest of lower levels.