Gift Nifty signals strong opening; FPIs extend buying streak in November

GIFT Nifty:

GIFT Nifty November 2026 futures surged 284 points, pointing to a strong opening for the Nifty 50.

Investor sentiment strengthened after the US and Iran indicated a willingness to resume peace negotiations, easing concerns over potential disruptions to oil supplies.

Brent crude futures slumped 7.6% to settle at $104.77 a barrel on Monday as hopes of a diplomatic breakthrough grew. Reports suggested that Washington and Tehran were maintaining contacts to end the eight-month conflict. However, uncertainty over the negotiations and the possibility of further military action continue to pose risks to energy markets.

Institutional Flows:

Foreign portfolio investors (FPIs) bought shares worth Rs 3,114.68 crore, while domestic institutional investors (DIIs) were net sellers of Rs 392.20 crore in the Indian equity market 2 November 2026, according to provisional data.

FPIs bought shares worth Rs 4318.90 crore in November through 2 November 2026. This follows net selling of Rs 48,082.27 crore in October 2026, while FPIs were net sellers of Rs 45,536.89 crore in September 2026.

Global Markets:

Dow futures fell 106 points, signalling a negative opening for US stocks.

Asian equities were trading lower on Tuesday, as technology shares remained under pressure amid concerns over the returns from heavy artificial intelligence investments. Japan's cash market remained closed for Culture Day.

Wall Street ended mixed on Monday, 2 November 2026, as weakness in technology shares offset gains across other sectors. The Dow Jones Industrial Average rose 213.67 points, or 0.41%, to 51,983.98. The S&P 500 declined 38.67 points, or 0.51%, to 7,541.40, while the Nasdaq Composite fell 272.68 points, or 1.07%, to 25,164.32.

Technology and semiconductor stocks remained under pressure as investors reassessed the scale and potential returns of AI-related investments. Nvidia fell 1.26%, Microsoft declined 2.83% and Apple lost 1.83%. Oracle also fell more than 8% amid plans to raise $20 billion through share and debt offerings.

Marvell Technology dropped 12.72%, while optical-components maker Lumentum plunged 18.59%. Marvell and Lumentum announced an all-stock agreement under which Marvell will acquire Lumentum in a deal with an implied enterprise value of $115 billion.

Apple reported fiscal fourth-quarter revenue of $114.5 billion, up 12% year on year and above the analyst estimate of $113.4 billion. Net income rose 12% to $30.71 billion, while earnings per share came in at $2.10 against expectations of $1.99. However, the company forecast a gross margin of 45% to 46% for the December quarter, below the 47.9% reported in the September quarter. Apple shares fell 1.83% during regular trading and declined further during the earnings call.

US manufacturing activity expanded at a faster pace in October. The Institute for Supply Management's manufacturing PMI rose to 55.5 from 54.5 in September, beating the market forecast of 54.5. The reading marked the 10th consecutive month of expansion in the manufacturing sector.

The US midterm elections on Tuesday are another focus for investors. The outcome could influence expectations for fiscal policy, government spending and regulation of the technology sector. Markets are also tracking central bank decisions this week. The Reserve Bank of Australia is widely expected to raise its cash rate by 25 basis points to 4.85%, while the Bank of England is expected to increase its policy rate from 3.75% to 4.0%.

Domestic Market:

The key equity benchmarks surged on Monday, extending their winning streak to a third consecutive session. Falling crude oil prices, strong Q2 earnings from Reliance Industries and Jio Platforms, and renewed foreign investor buying supported the rally. Expectations of long-term capital gains tax relief, a stronger rupee and easing bond yields further lifted sentiment. Weakness in global AI-linked stocks also supported Indian equities. The Nifty closed above 23,400. Oil & gas, metal and consumer durables stocks led the gains. In contrast, media and IT shares declined.

The S&P BSE Sensex jumped 1,233.25 points or 1.66% to 75,692.78. The Nifty 50 index surged 387.70 points or 1.68% to 23,440.80. In the three consecutive trading sessions, the Sensex and the Nifty climbed 3.09% and 3.27%, respectively.

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