Indian equity markets extended their recovery for a fourth consecutive session on Tuesday. The Nifty 50 advanced 1.58% to close at 23,810.85, while the Sensex gained 1.62% to finish at 76,917.85. Both benchmarks reached their highest closing levels in approximately two months.
The rally was supported by stronger corporate earnings, renewed foreign investor buying and gains in banking stocks. Foreign portfolio investors were net buyers in four of the previous five sessions, according to market reports.
However, global markets remained unsettled. The United States carried out limited strikes on Iran’s Qeshm Island, raising fresh concerns about Middle East tensions and the security of the Strait of Hormuz. Crude oil prices initially rebounded following the strikes but subsequently declined amid renewed diplomatic developments.
Other important developments included Australia’s central bank raising interest rates to an 18-year high, Saudi Aramco reporting higher quarterly profits, and strong second-quarter results from State Bank of India and the National Stock Exchange of India.
Technology stocks remained under pressure as investors questioned the returns on massive artificial intelligence investments. Apple’s rising memory costs and Palantir’s commercial growth outlook attracted particular attention.
Today’s key market takeaways:
- Nifty 50 closed at 23,810.85, up 1.58%.
- Sensex closed at 76,917.85, up 1.62%.
- Indian benchmark indices gained approximately 5% over four sessions.
- Foreign investors returned as net buyers in four of the previous five sessions.
- US strikes on Iran’s Qeshm Island increased geopolitical uncertainty.
- Brent crude was reported at $102.12 per barrel, down 2.53% at approximately 7:11 PM IST.
- Australia’s central bank raised its cash rate to 4.85%.
- SBI reported quarterly net profit of ₹23,038 crore.
- NSE reported a 23% year-on-year increase in quarterly profit.
- Apple and Palantir shares faced pressure despite strong revenue growth.
1. Global Geopolitical Updates
United States Carries Out Strikes on Iran’s Qeshm Island
The Middle East conflict returned to the centre of global market attention on Tuesday.
The United States carried out limited strikes on Iran’s Qeshm Island, located near the strategically important Strait of Hormuz.
US officials described the operation as defensive, saying it targeted Iranian forces using surface-to-air missiles against American assets. They also indicated that the strikes did not represent a return to major combat operations.
Iranian state media reported explosions on Qeshm Island, Hengam Island and near Bandar Abbas.
The strikes came at a sensitive time, with diplomatic discussions between Washington and Tehran still underway through Qatari mediators.
A senior Iranian official indicated that both countries remained far from reaching an agreement to end the conflict. Tehran also said it would not accept what it described as excessive American demands.
Qatar confirmed that both sides were reviewing proposals submitted by mediators and that discussions were continuing.
Why it matters for global markets
The Strait of Hormuz is one of the world’s most important energy transportation routes. Approximately one-fifth of global oil supply passed through the waterway during peacetime.
Any prolonged disruption could affect crude oil supplies, shipping costs, insurance premiums and inflation across major economies.
Potential investor impact:
- Oil and gas prices could remain volatile.
- Airlines and other fuel-intensive businesses face uncertainty over operating costs.
- Oil-importing countries such as India could face pressure on their import bills.
- Energy producers may benefit from higher realised oil prices, although broader geopolitical instability can increase market risk.
Bullish scenario: Diplomatic progress could reduce the geopolitical risk premium in oil prices.
Bearish scenario: Further military escalation could disrupt energy supplies and increase inflationary pressure.
At present, negotiations are continuing, but there is no confirmed peace agreement.
Trump Says US Will Stop Military Funding to Israel
Another significant geopolitical development came from US President Donald Trump.
Trump said Washington would stop providing approximately $4 billion in annual military funding to Israel after the end of 2026, claiming that he had reached an understanding with Israeli Prime Minister Benjamin Netanyahu.
However, several important details remain unclear.
The existing US-Israel memorandum of understanding provides approximately $3.8 billion in annual military assistance and is approaching its scheduled expiration in 2028.
It was not immediately clear which exact funding arrangement Trump’s announcement referred to.
Investor implication: Any change in US involvement in the Middle East could influence regional security expectations and energy-market sentiment. However, investors should not assume that the announcement alone signals an immediate improvement in regional stability.
US Midterm Elections Put Political Uncertainty in Focus
The United States is holding its midterm elections on November 3.
The elections will determine the balance of power in Congress and could influence the administration’s ability to implement economic, trade, technology and regulatory policies.
Technology investors are particularly interested in the potential implications for artificial intelligence regulation and data-centre development.
The election outcome was not yet known at the time of this report.
What investors should monitor: Election results, potential changes in congressional control and their implications for technology regulation, taxation, trade and government spending.
2. Global Key Financial Updates
Crude Oil Prices Reverse Direction After Geopolitical Developments
Crude oil prices experienced significant volatility on Tuesday.
Following the US strikes on Iran’s Qeshm Island, Brent crude futures initially rebounded to approximately $106.13 per barrel during the international trading session.
However, prices subsequently declined amid renewed diplomatic developments.
At approximately 7:11 PM IST, Brent crude futures were reported at: Commodity Price Movement Brent crude $102.12/barrel -2.53% Intraday low $101.41/barrel —
The market’s reaction reflects uncertainty about the future direction of the conflict and the possibility of reduced energy supply disruptions.
Potential sector impact for Indian markets:
- Oil marketing companies: Lower crude could improve marketing margins, subject to retail pricing.
- Airlines: Lower fuel costs could support profitability.
- Paint manufacturers: Lower crude-linked input costs could be positive.
- Tyre manufacturers: Potential relief from petroleum-based raw-material costs.
- Upstream oil producers: Lower realised oil prices could reduce revenue.
- Shipping and logistics: Potential relief if energy and insurance costs moderate.
Companies such as BPCL, IOCL, HPCL and InterGlobe Aviation may attract investor attention if crude prices remain lower.
However, Brent remains above $100 per barrel, so the decline should not yet be interpreted as a complete resolution of the energy supply problem.
Reserve Bank of Australia Raises Interest Rates to an 18-Year High
The Reserve Bank of Australia increased its benchmark cash rate by 25 basis points to 4.85%, its highest level in 18 years.
This was the fifth rate increase by the central bank during 2026.
The decision was taken by a 6–3 vote, with three policymakers preferring to leave rates unchanged.
An important detail was the removal of explicit wording suggesting that further increases could be required if necessary. Markets interpreted this as a possible signal that the central bank may be approaching the end of its tightening cycle.
However, the inflation outlook remains challenging.
Key developments:
- Cash rate increased from 4.60% to 4.85%.
- Underlying inflation reached 3.7% in the third quarter.
- Unemployment reached 4.7%.
- The central bank expects headline inflation to reach 4.5% in the fourth quarter.
Why it matters globally
Higher interest rates increase borrowing costs for households and businesses. They can also influence currency movements, bond yields and international capital flows.
Bullish interpretation: The narrow voting split and removal of explicit further-hike guidance suggest policymakers may consider pausing to assess the impact of previous increases.
Bearish interpretation: Inflation remains elevated, and further increases cannot be ruled out if price pressures persist.
Saudi Aramco Reports 35% Growth in Quarterly Profit
Saudi Arabia’s state-owned energy giant, Saudi Aramco, reported a substantial increase in third-quarter profits.
The company reported net profit of $36.3 billion, compared with $26.9 billion in the corresponding quarter last year.
Its adjusted net profit, excluding the sale of its stake in Malaysian refining and petrochemical company PRefChem, increased 9% to $31.2 billion. Financial Metric Q3 2026 Net Profit $36.3 billion Previous-year Net Profit $26.9 billion Adjusted Net Profit $31.2 billion Average Oil Selling Price $95.20/barrel Previous-year Average Selling Price $70.10/barrel
Higher oil prices and stronger refining margins supported the company’s performance.
The company also continued transporting oil through alternative routes, including its East-West pipeline to the Red Sea, despite disruptions to tanker traffic through the Strait of Hormuz.
Investor implication: Strong results demonstrate how higher energy prices can support the profitability of major oil producers. However, sustained geopolitical disruptions can also create significant risks for the global economy and energy supply chains.
Global Equity Markets Remain Under Pressure From AI Concerns
Global equity markets remained cautious as investors assessed artificial intelligence valuations, corporate spending and the US midterm elections.
During the previous US trading session: US Index Movement S&P 500 -0.51% Nasdaq Composite -1.07% Dow Jones Industrial Average +0.41%
The technology-heavy Nasdaq-100 had also entered correction territory, having closed more than 10% below its record closing high.
Asian markets experienced further weakness on Tuesday.
- South Korea’s Kospi declined approximately 4%.
- Shanghai Composite fell around 0.8%.
- Hong Kong’s Hang Seng gained approximately 0.6%.
- European benchmark indices were modestly lower during early trading.
Investors are increasingly questioning whether the enormous capital expenditure planned by technology companies for AI infrastructure will generate adequate returns.
Data-centre construction, semiconductor demand and cloud-computing investment remain important growth opportunities. However, rising debt and uncertain profitability are increasing investor caution.
Investor implication: Indian IT and technology stocks could experience volatility if global technology weakness continues. At the same time, strong AI adoption may create long-term opportunities for selected technology and semiconductor businesses.
3. Indian Stock Market Highlights
Foreign Investors Return to Indian Equities
One of the most encouraging developments for Indian equity markets was the improvement in foreign investor activity.
Foreign portfolio investors were net buyers in four of the previous five trading sessions, according to market reports.
This comes after a prolonged period of substantial foreign selling in Indian equities.
The improvement in foreign investor participation coincided with:
- Strong corporate earnings.
- Lower crude oil prices compared with recent highs.
- Improved sentiment towards Indian banking stocks.
- More attractive valuations in selected large-cap companies.
Some investors also viewed Indian equities as a potential hedge against the global artificial intelligence trade.
Why it matters: Sustained foreign buying could support large-cap stocks and improve overall market liquidity.
However, one positive week of foreign flows does not establish a long-term reversal. Investors should monitor the trend over several weeks.
State Bank of India Reports Strong Q2 FY27 Profit Growth
State Bank of India reported a higher second-quarter profit, supported by strong loan growth, improved margins and a one-time gain from the sale of a stake in SBI Funds Management.
SBI Q2 FY27 Performance Financial Metric Q2 FY27 Net Profit ₹23,038 crore Previous-year Net Profit ₹20,160 crore Gross Loan Growth Approximately 18% Deposit Growth 12.3% Net Interest Income Growth 14.7% Domestic Net Interest Margin 3.11% Gross NPA Ratio 1.39%
The bank’s domestic net interest margin improved by 11 basis points compared with the previous quarter.
Gross non-performing assets also improved from 1.47% three months earlier to 1.39%.
However, investors should note that SBI’s profit included a one-time gain of approximately ₹7,288 crore from selling roughly 6% of SBI Funds Management.
This means the headline profit growth should not be interpreted entirely as recurring operating growth.
Additional concern: Cybersecurity
SBI also confirmed that it was strengthening its cybersecurity systems after a recent incident exposed 3,897 customer records on the dark web.
The bank said it was working with industry participants on a common testing environment to evaluate AI models and identify potential cybersecurity threats.
Investor outlook: Strong credit growth, improving asset quality and better margins are positive. However, deposit costs, future margins and cybersecurity remain important areas to monitor.
National Stock Exchange Reports 23% Profit Growth
The National Stock Exchange of India reported its first quarterly results following its September stock market listing.
The exchange operator reported a 23% year-on-year increase in consolidated second-quarter profit. Financial Metric Q2 FY27 Consolidated Profit ₹2,578 crore Previous-year Profit ₹2,098 crore Revenue from Operations ₹4,067 crore Previous-year Revenue ₹3,677 crore Average Daily Cash Market Volume Growth 24% Currency Derivatives Volume Growth 150%
Higher trading activity supported the results.
However, the exchange continues to face challenges from tighter regulations and higher taxes, which have affected transaction revenues and slowed options trading.
Its competitor BSE has also gained market share in index options.
Investor implication: Strong trading volumes and retail participation remain positive for the Indian capital-markets ecosystem. However, regulatory changes and competition will remain important factors affecting future profitability.
Marico Shares Rally After Strong Quarterly Results
Marico shares gained approximately 10% on Tuesday after the company reported better-than-expected quarterly profit.
The company reported strong domestic volume growth and improvement in operating performance.
Marico Q2 FY27 Results Financial Metric Q2 FY27 Consolidated Revenue ₹3,897 crore Previous-year Revenue ₹3,450 crore Revenue Growth 12.95% Net Profit ₹558 crore Previous-year Net Profit ₹432 crore Net Profit Growth 29.16%
Other important operating developments included:
- Domestic underlying volume growth of 10%.
- International constant-currency growth of 13%.
- Gross margin expansion of approximately 600 basis points year-on-year.
- EBITDA growth of approximately 27%.
The company benefited from moderation in copra prices and a favourable product mix.
Investor implication: Strong volume growth and improved margins are positive indicators for Marico. However, investors should monitor raw-material prices and whether the company can sustain its earnings momentum in subsequent quarters.
4. Nifty and Sensex Movement
Indian Benchmark Indices Extend Their Four-Day Rally
Indian equity markets continued their strong recovery on Tuesday, supported by financial stocks, corporate earnings and improving foreign investor sentiment.
Both benchmark indices recorded gains of more than 1.5%. Index Closing Level Daily Change Nifty 50 23,810.85 +1.58% BSE Sensex 76,917.85 +1.62% Nifty Midcap 100 — +1.1% Nifty Smallcap 100 — +0.3%
The Nifty and Sensex have gained approximately 5% over four consecutive sessions, reaching two-month closing highs.
Sectoral Performance
Financial stocks led the benchmark rally.
- Financials gained approximately 1.8%.
- Private Banks advanced approximately 2.0%.
- HDFC Bank gained 3.6%.
- ICICI Bank gained 2.7%.
Thirteen of the sixteen major sectors recorded gains, indicating broad participation in the market recovery.
Marico also gained approximately 10% following its quarterly results.
Nifty 50 Technical Outlook
The Nifty closed at 23,810.85, placing it close to the important psychological 24,000 mark.
The following levels are worth monitoring during the next session: Level Significance 23,800 Immediate reference level around today’s closing price 24,000 Important psychological round-number threshold Above 24,000 Sustained trading could strengthen short-term sentiment
These are monitoring references rather than confirmed technical support or resistance levels.
The market’s ability to sustain recent gains will be important, particularly because the benchmark has already advanced approximately 5% over four sessions.
5. Top Business and Technology Developments
Apple Faces Margin Pressure From Rising Memory Chip Costs
Apple reported its September-quarter results, with revenue and iPhone sales exceeding analyst expectations.
Apple Q4 FY26 Results Financial Metric Reported Performance Revenue $114.5 billion Revenue Growth 12% YoY Net Income $30.7 billion Net Income Growth 12% YoY iPhone Revenue $57.58 billion iPhone Revenue Growth 17% YoY
Despite the strong revenue performance, Apple’s outlook raised concerns about rising component costs and future profitability.
The company warned that rising memory-chip costs would put pressure on margins.
Its gross margin stood at 47.9% for the September quarter, but the company expects it to decline to 45–46% in the December quarter.
Additional expenses associated with its AI-powered Siri services are also contributing to the pressure.
Apple shares fell approximately 4% in premarket trading following the outlook.
Investor implication: Strong iPhone sales demonstrate continued consumer demand, but rising memory prices and AI-related expenses could affect profitability. The development is also important for the wider semiconductor and smartphone supply chain.
Palantir Reports Strong Revenue Growth but Shares Decline
Palantir Technologies reported strong third-quarter revenue growth, supported by demand for its artificial intelligence and data analytics software. Financial Metric Q3 2026 Revenue $2.31 billion Revenue Growth Approximately 96% YoY US Commercial Revenue $984 million US Government Revenue $953 million Q4 Revenue Guidance $2.649–$2.653 billion Revised Full-year Revenue Guidance $8.530–$8.534 billion
For the first time, Palantir’s US commercial revenue exceeded its US government revenue.
However, its US commercial total contract value growth slowed to 11% year-on-year in the third quarter, compared with more than 153% in the previous quarter.
This slowdown raised concerns among investors despite the strong headline revenue growth.
Palantir shares fell sharply in premarket trading.
Investor implication: AI software demand remains strong, but investors are increasingly examining contract growth, customer acquisition, valuations and the sustainability of future earnings.
Marvell’s Proposed Acquisition of Lumentum Highlights AI Infrastructure Risks
A major technology-sector development from November 2 continued to influence market sentiment on Tuesday.
Marvell Technology agreed to acquire optical-components manufacturer Lumentum in an all-stock transaction valued at approximately $115 billion, including debt.
The transaction is designed to strengthen Marvell’s position in optical connectivity, an increasingly important technology for AI data centres.
Key deal details:
- Enterprise value: Approximately $115 billion.
- Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share.
- Expected transaction completion: First half of 2028, subject to approvals.
- Combined company’s projected addressable market: Approximately $550 billion.
Despite the strategic opportunity, investors reacted negatively to the size of the transaction and potential financial and execution risks.
Marvell shares fell more than 10%, while Lumentum shares declined more than 15% following the announcement.
Investor implication: The AI infrastructure opportunity is attracting major corporate investments. However, the market reaction demonstrates that investors are becoming more cautious about acquisition costs, dilution and the financial returns expected from AI-related spending.
Upcoming Events to Watch
The following events could influence global markets and Indian equities over the next few sessions. Date Event Why It Matters November 3 US September JOLTS Job Openings Report Labour-market conditions and interest-rate expectations November 3–4 US Midterm Election Results Political and regulatory outlook November 3, after US market close AMD Q3 2026 Results Semiconductor and AI demand November 4 US Treasury Quarterly Refunding Announcement Bond issuance and Treasury yield expectations November 5 Bank of England Monetary Policy Decision UK interest-rate outlook November 6 US October Employment Report Labour-market strength and Federal Reserve expectations
The US JOLTS report is scheduled for 10:00 AM Eastern Time on November 3, equivalent to approximately 8:30 PM IST.
AMD’s third-quarter results are scheduled after the US market closes on November 3, meaning the announcement will be available in India during the early hours of November 4.
The US employment report for October is scheduled for November 6.
Next-Session Outlook: November 4, 2026
Indian equity markets enter Wednesday’s session with positive short-term momentum.
The four-session rally, improving foreign investor participation and strong banking-sector performance provide support. However, global geopolitical developments and technology-sector weakness remain important risks.
Factors Supporting the Market
- Improving foreign investor activity: Foreign portfolio investors have returned as net buyers in four of the previous five sessions. Continued buying could support large-cap stocks.
- Strong banking-sector performance: SBI’s quarterly results and gains in private banking stocks indicate continued investor interest in the financial sector.
- Corporate earnings: Results from SBI, NSE and Marico provide evidence of earnings strength across banking, capital markets and consumer businesses.
- Lower crude prices compared with recent highs: If Brent remains around or below current levels, it could reduce some pressure on India’s import bill and benefit selected oil-consuming sectors.
Risks to Monitor
- Middle East geopolitical uncertainty: The US strikes on Iran’s Qeshm Island have increased uncertainty. Any further escalation could push crude prices higher.
- Profit booking after a strong rally: The Nifty has gained approximately 5% over four sessions. Short-term traders may book profits following the recent advance.
- Global technology weakness: Apple’s margin outlook, Palantir’s bookings concerns and broader AI investment uncertainty could affect global risk appetite.
- US political uncertainty: The midterm election outcome could influence expectations around technology regulation, taxation and government spending.
Sectors Worth Monitoring
Sector Key Factors to Watch Banking SBI results, loan growth, margins and foreign investor flows FMCG Marico earnings and raw-material costs Capital Markets NSE results, trading volumes and regulatory changes Oil Marketing Brent crude and domestic fuel pricing Airlines Aviation fuel costs Information Technology Global technology sentiment and AI investment trends
Overall Market View: Cautiously Positive
The short-term trend remains constructive, supported by domestic earnings and renewed foreign investor interest.
However, the rally needs broader participation and sustained buying to continue. Investors should also monitor whether crude oil prices remain stable and whether global markets recover from technology-sector weakness.
The 23,800 area and the psychological 24,000 level are useful reference points for the next session.
A sustained move above 24,000 could strengthen sentiment, while a failure to hold recent gains may lead to consolidation.
Final Takeaway
Indian equity markets continued their strong recovery on November 3, supported by banking stocks, corporate earnings and improving foreign investor participation.
The performance of SBI, NSE and Marico provided positive domestic earnings signals.
Globally, however, investors face a more complicated environment. The US-Iran conflict continues to influence crude oil prices, Australia’s central bank has raised interest rates to an 18-year high, and concerns about AI investment returns are creating volatility in technology stocks.
For Indian investors, the three most important factors to monitor over the next trading session are:
- Crude Oil: Whether Brent remains near current levels or resumes its upward movement.
- Foreign Investor Flows: Whether recent FPI buying continues.
- Nifty 50: Whether the index sustains its recent gains and approaches the 24,000 mark.
The Indian market’s short-term outlook remains positive, but investors should distinguish between a sentiment-driven rally and a sustained improvement in corporate earnings.
Sources and Further Reading
- Reuters – Iran-US deal remains out of reach despite diplomatic efforts.
- Reuters – US carries out defensive strikes on Iran’s Qeshm Island.
- Reuters – Trump says US will stop funding Israel after 2026.
- NDTV Profit – Brent crude falls after Trump’s announcement.
- Reuters – Australia’s central bank raises rates to 4.85%.
- Associated Press – Saudi Aramco reports higher third-quarter profits.
- Associated Press – Global markets, oil and AI-related developments.
- Reuters – Indian shares extend rally as foreign buyers return.
- Reuters – State Bank of India Q2 results and cybersecurity update.
- Reuters – NSE reports 23% quarterly profit growth.
- Business Standard – Marico Q2 FY27 financial results.
- Reuters – Apple shares slide on higher memory costs.
- Reuters – Palantir forecasts strong quarterly revenue.
- Reuters – Marvell’s proposed $115 billion acquisition of Lumentum.
- US Bureau of Labor Statistics – Employment and JOLTS release schedules.
- AMD Investor Relations – Q3 2026 results announcement schedule.
- Bank of England – 2026 monetary policy meeting schedule.
Disclaimer: This report is prepared for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. Market prices, corporate results and economic figures are subject to change. Investors should conduct independent research and consult a SEBI-registered investment adviser before making investment decisions.