Mumbai, Nov 2: Indian equity markets began the week on a strong footing on Monday, with benchmark indices Sensex and Nifty climbing more than 1.6 per cent, supported by encouraging corporate earnings, robust domestic economic indicators and renewed buying by foreign investors.

The Nifty 50 advanced 387.70 points, or 1.68 per cent, to close at 23,440.80. The BSE Sensex gained 1,233.25 points, or 1.66 per cent, settling at 75,692.78.

Vinod Nair, Head of Research at Geojit Investments, attributed the rally to better-than-expected second-quarter earnings and improving domestic economic conditions. He said October passenger vehicle sales indicated strong festive demand, while higher gross Goods and Services Tax (GST) collections reflected continued resilience in consumption and economic activity.

Global developments also supported investor sentiment. Softer crude oil prices and renewed diplomatic engagement between the United States and Iran helped ease concerns over energy costs and geopolitical uncertainties. Foreign investors returning to Indian equities amid a global shift in artificial intelligence-related stocks further strengthened the rally.

The positive momentum extended beyond large-cap stocks, with mid-cap and small-cap shares also recording gains.

Among sectoral indices on the National Stock Exchange, Nifty Metal emerged as the top performer, rising 2.8 per cent. Nifty Public Sector Bank gained 1.19 per cent, while Nifty Auto advanced 1.05 per cent. Nifty Realty and Nifty Fast Moving Consumer Goods rose 0.80 per cent and 0.4 per cent, respectively.

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However, information technology and media stocks faced selling pressure. Nifty IT declined 0.8 per cent, followed by Nifty Media, which dropped 0.7 per cent. Nifty Private Bank and Nifty Pharma slipped 0.40 per cent and 0.32 per cent, respectively.

Among individual Nifty 50 stocks, Reliance Industries, Tata Steel, JSW Steel and Shriram Finance were among the top gainers. Infosys, ICICI Bank, HDFC Life, Kotak Mahindra Bank and Axis Bank featured among the major losers.

In the commodities market, Brent crude prices fell more than 4 per cent to USD 108.54 per barrel. Despite the decline, prices remained above their long-term average. Gold continued to trade weak at Rs 1,38,420 per 10 grams for 24-karat gold, while silver gained 1.65 per cent to Rs 1,82,094 per kg.

Meanwhile, the Indian rupee weakened by 21 paise to 94.97 against the US dollar, compared with Friday's closing level of 94.76. The currency opened at 94.90.

Rajeev Sharan, Head of Research at Brickwork Ratings, said the rupee was under pressure from a stronger dollar index, which was hovering near 101.88, and a selloff in US technology stocks linked to artificial intelligence concerns.

He pointed out that India's foreign exchange reserves had declined for the seventh consecutive week, falling by USD 1.27 billion to USD 719.75 billion. However, the reduction was entirely due to a USD 2.65 billion decline in the valuation of gold reserves. Foreign currency assets, which reflect actual dollar transactions, increased by USD 1.36 billion.

Sharan added that lower crude prices and foreign investor buying in domestic equities were providing some support to the rupee, although continued strength in the US dollar could keep the currency under pressure.

Elsewhere in Asia, markets delivered a mixed performance. Japan's Nikkei 225 declined 0.12 per cent to 63,215, while Singapore's Straits Times fell 1.37 per cent to 5,304. Taiwan's weighted index shed 0.65 per cent to close at 44,920.

In contrast, Hong Kong's Hang Seng gained 0.26 per cent to 23,356, while South Korea's KOSPI advanced more than 2 per cent to settle at 5,859. (With ANI inputs)