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Below the Quote on Daily Market Commentary for November 2nd 2026 by Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian markets are likely to remain constructive in the near term, as long as crude oil prices remain contained, supported by easing tensions in West Asia and improving domestic economic indicators. Brent crude prices declined around 4% to USD 108/bbl amid renewed diplomatic efforts involving Iranian and Qatari officials, easing concerns over potential supply disruptions. Domestic sentiment also received support from record GST collections, which surged 23% Year over Year to rupees 2.31 lakh crore in October, marking the fastest growth in over four years. However, investors will remain watchful of the outcome of the November 3 US midterm elections, which could trigger volatility in global markets. On the domestic front, stock-specific action is likely to remain in focus, with SBI, NSE, Bajaj Finserv, Solar Industries and Bajaj Holdings scheduled to announce results tomorrow.  The Nifty 50 gained 1.7%, while Midcap100 and Smallcap100 advanced 1.2% and 0.7%, respectively. Sectoral performance was mixed, with Nifty Oil & Gas leading the gains, rising 6%, driven by a rally of over 11% in Reliance Industries following stronger-than-expected quarterly results. Nifty Metal advanced 3.2%, supported by easing crude prices, which are expected to provide relief on input, logistics and energy costs. Nifty Auto gained 1.3%, supported by strong October 2026 sales reported by major automakers, which exceeded expectations despite a high base. In contrast, Nifty IT declined 0.9%. The 2QFY27 earnings season has remained strong, with MOFSL Universe companies reporting sales, EBITDA and PAT growth of 26%, 24% and 33% YoY, respectively, compared with estimates of 19%, 14% and 19%. This marks the strongest earnings growth in 12 quarters. Among the 35 Nifty companies that have reported so far, earnings grew 22%, ahead of the 20% estimate. Financials, Metals and Oil & Gas contributed 78% of incremental earnings. Consequently, Nifty EPS estimates for FY 27 and FY 28 have been revised upwards to rupees 1,247 and rupees 1,428, implying growth of 17% and 15%, respectively.

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