Sensex, Nifty Rally for Fourth Straight Session: Key Factors Driving the Indian Stock Market Higher

Indian equity markets extended their recovery on Tuesday, November 3, 2026, with the Sensex and Nifty 50 registering gains of over 1.5%. The upward movement was supported by easing crude oil prices, improved foreign fund flows and buying in heavyweight banking and consumer stocks.

At the closing bell, the Nifty 50 rose 370.05 points, or 1.58%, to settle at 23,810.85, while the Sensex jumped over 1,200 points, or 1.62%, to close at 76,917.85. Both indices recorded their fourth consecutive session of gains, building on Monday's rally when the Nifty and Sensex had advanced 1.68% and 1.66%, respectively.

Sectoral Performance: FMCG, Realty and Financial Services Lead

FMCG and financial stocks emerged as the major beneficiaries of Tuesday's buying activity, with several sectoral indices posting gains of over 1%.

The Nifty FMCG index surged 3.65%, making it the top-performing sector, followed by Nifty Realty, which gained 2.33%. Nifty Financial Services advanced 1.84%, while Nifty Auto rose 1.71%. Bank Nifty also ended 0.98% higher.

On the flipside, the Nifty PSU Bank index declined 1.27%, while Nifty Metal and Nifty Energy slipped 0.14% and 0.11%, respectively.

The Nifty IT index managed to close 0.24% higher despite facing selling pressure in select heavyweight stocks.

Midcap Index Gained Over 1%

The recovery was not limited to the benchmark indices, as buying interest was also visible across the broader market. However, midcap and smallcap stocks delivered comparatively modest returns.

At the close, the Nifty Midcap 100 gained 1.06%, while the Nifty Smallcap 100 advanced 0.31%.

Two Key Factors Driving the Indian Stock Market Higher

Declining Crude Oil Prices Boost Investor Confidence

The retreat in international crude oil prices continued to provide relief to Indian equity markets on Tuesday. Oil prices have moved lower from their recent peaks amid expectations of a possible easing of geopolitical tensions involving Iran.

Brent crude was trading around $105 per barrel after falling approximately 7% in the previous session. The decline followed fresh hopes of diplomatic progress towards resolving the ongoing conflict.

Renewed Foreign Investor Buying Supports the Rally

Foreign institutional investors have returned to Indian equities after a prolonged period of selling, providing additional support to the ongoing market recovery.

On Monday, November 2, foreign investors recorded net purchases of approximately ₹3,115 crore in Indian equities. The inflows reflected improving investor sentiment amid easing crude oil prices and better corporate earnings.

European Markets Trade Lower Amid Selling Pressure

European stock markets were trading in negative territory on Tuesday, November 3, 2026, with major benchmark indices recording losses. Germany's DAX declined 0.63%, or 162.87 points, to 25,820.00, while the UK's FTSE 100 fell 0.47%, or 50.36 points, to 10,710.97. France's CAC 40 also slipped 0.22%, or 17.65 points, to 8,030.04. All three indices remained under pressure as trading continued across European markets.

US Stock Market Futures Trade Mixed Ahead of Midterm Elections

US stock index futures were trading mixed on Tuesday, November 3, 2026, ahead of the US midterm elections. Dow Jones futures declined 0.49%, or 256 points, to 51,877, while S&P 500 futures slipped 0.03%, or 2.50 points, to 7,572. In contrast, Nasdaq 100 futures gained 0.41%, or 116.50 points, to trade at 28,244, showing relative strength in technology stocks despite weakness in the broader US market.