Reliance powers 1,233-point Sensex rally

Reliance Industries (RIL) powered the Sensex past the 75,000 mark on Monday, as its earnings performance sent shares soaring nearly 12%. A sharp $10-per-barrel decline in crude oil prices added fuel to the rally, helping benchmark indices extend their winning streak to a third consecutive session.

The Sensex surged 1,233.25 points, or 1.66%, to close at 75,692.78, while the Nifty jumped 387.70 points, or 1.68%, to settle at 23,440.80, its biggest gain since June 12. The gains marked a strong start to November, with both indices rising more than 3% over the past three trading sessions.

RIL soared 11.64% to Rs 1,299 on the BSE, its biggest single-day gain since April 7, 2020, after the oil-to-telecom conglomerate reported a 40.6% year-on-year jump in net profit and 29% growth in revenue for the September quarter.

The surge added a record Rs 1.83 lakh crore to RIL’s market capitalisation in a single session. More strikingly, the stock alone contributed 756.86 points, or 61.37%, of the Sensex’s 1,233-point rise. Its contribution to the Nifty was equally significant at 197 points, accounting for nearly 51% of the index’s gains.

The rally also pushed the combined market capitalisation of RIL and recently listed Jio Platforms past the Rs 30-lakh-crore milestone to Rs 30.68 lakh crore. RIL was valued at Rs 17.58 lakh crore, while Jio Platforms commanded Rs 13.10 lakh crore.

The other big catalyst was crude oil. Brent prices dropped nearly $10 a barrel to $108, offering relief to a market rattled in recent months by elevated energy costs, inflation concerns and geopolitical tensions. For India, a major oil importer, softer crude prices ease pressure on inflation, corporate margins and the rupee.

“Indian equity markets started November on a strong note, with the rally supported by easing crude oil prices, strong Reliance Industries results and improving geopolitical sentiment,” said Ankur Punj, Managing Director, Equirus Wealth.

The optimism extended beyond Reliance. Better-than-expected corporate earnings, healthy festive demand and encouraging domestic economic indicators helped broaden the rally.

Foreign portfolio investors bought shares worth Rs 3,114.68 crore while domestic institutional investors sold shares worth Rs 392.20 crore respectively, as per provisional data by the exchanges.

Vinod Nair, head of research, Geojit Investments, said strong October passenger vehicle sales and higher gross GST collections reinforced confidence in domestic consumption and economic resilience. “Renewed US-Iran diplomatic efforts and softer crude prices also helped ease concerns over energy costs and geopolitical risks,” he added.

Market breadth reflected the improved sentiment, with 2,889 stocks advancing against 1,577 declines on the BSE. The Nifty Midcap 100 gained 1.19%, while the Nifty Smallcap 100 rose 0.71%, signalling that buying interest was not confined to index heavyweights.

The rally added Rs 7.96 lakh crore to investors’ wealth, lifting the combined market capitalisation of BSE-listed companies to Rs 482.3 lakh crore.

Oil and gas stocks led the sectoral gains, followed by metals, consumer durables, PSU banks and automobiles. IT, private banks and pharmaceutical stocks lagged.

Apart from Reliance, Tata Steel, UltraTech Cement, SBI and NTPC were among the leading Sensex gainers.