Reliance earnings, lower oil prices power India's Sensex to near two-month high

Indian shares closed higher on Monday as strong Reliance Industries earnings, falling oil prices and hopes of tax breaks on equity investments lifted the BSE Sensex to a nearly two-month high, analysts and fund managers said.

Reuters reported citing sources that India’s markets regulator has recommended removal of long-term capital gains tax for foreign investors and for domestic mutual fund investors if they are selling existing mutual funds to invest in new ones.

The Nifty 50 added 1.68% to 23,440.8, and the BSE Sensex rose 1.66% to 75,692.78. They have risen 3.3% in three sessions.

Reliance Industries surged 11.6%, marking its best day since April 2020, after the oil-to-telecom conglomerate posted higher-than-expected quarterly profit. It contributed to half of Nifty 50’s gains on the day.

“The underperformance in Reliance’s shares so far this year has amplified the gains in the stock today after robust quarterly earnings,” said VK Vijayakumar, chief investment strategist at Geojit Investments.

Despite today’s gains, Reliance Industries is down 17.2% in 2026.

Meanwhile, Brent crude prices fell to $109 per barrel from a six-month high of $118 on Friday, as Iranian and Qatari officials held a third straight day of talks aimed at pushing for a deal to end the US-Israeli war on Iran.

Thirteen of the 16 major sectors logged gains. The broader small-caps and mid-caps added 0.7% and 1.2%, respectively.

The macroeconomic indicators like Goods and Services Tax collection, loan growth, and auto sales, have shown resilience despite global headwinds, providing further support to the markets perked up by oil prices coming off from six-month highs, Vijayakumar said.

Auto stocks rose 1.3%, with Maruti Suzuki India and Tata Motors Passenger Vehicle gaining 2.4% and 2.6% respectively on optimism over monthly sales.

IT stocks fell 0.5%, as investors likely paused after a nearly 18% surge last month.