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Reliance Industries' Stellar Q2 FY27 Results Drive Market Rally; SEBI Proposes LTCG Removal for FPIs

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The Indian markets are witnessing a strong rally today, primarily fueled by Reliance Industries' robust Q2 FY27 earnings, which saw its net profit surge 40% to ₹25,548 crore, propelling its shares over 7% higher. This positive momentum is further supported by a significant proposal from SEBI to remove Long-Term Capital Gains (LTCG) tax for Foreign Portfolio Investors, aiming to attract crucial foreign capital. The Nifty is trading above 23,200, while the Sensex has gained over 800 points, reflecting broad-based buying interest.

Key highlights

• Reliance Industries: Net profit rose 40% to ₹25,548 crore in Q2 FY27, with shares surging over 7% today.
• Indian Equity Markets: Sensex gained over 800 points, and Nifty traded above 23,200, driven by RIL earnings and easing crude prices.
• SEBI Recommendation: Regulator reportedly backed removing LTCG tax for FPIs and proposed relief for domestic mutual fund investors.
• Crude Oil Prices: Brent crude eased to $110-$111 per barrel from recent highs, offering relief for India's import bill.
• Tata Motors EV Sales: Punch.ev crossed 5,000 monthly dispatches in October 2026, with overall EV sales up nearly 75% YoY.

Reliance Industries' Stellar Q2 FY27 Earnings Propel Market Gains

Reliance Industries (RIL) emerged as the primary catalyst for today's market rally, with its shares surging over 7% following the announcement of a robust financial performance for the second quarter of fiscal year 2027 (Q2 FY27). The conglomerate reported a consolidated net profit attributable to shareholders of ₹25,548 crore, marking a significant 40% year-on-year (YoY) increase. This impressive growth was largely driven by a strong recovery and performance in its Oil-to-Chemicals (O2C) business, which benefited from a surge in global fuel margins and elevated transportation fuel cracks.

The company's consolidated revenue also saw a substantial rise of 27.8% YoY to ₹3,62,268 crore, while EBITDA increased by 23.9% to a record ₹62,409 crore. This strong performance in the O2C segment, which accounts for a significant portion of RIL's revenue, was complemented by growth in its digital services, helping to offset weaker earnings from the retail segment. The market capitalization of RIL jumped by over ₹1 lakh crore, reaching ₹16.74 lakh crore, making it the biggest gainer among Sensex and Nifty firms in early trade. Analysts are largely positive on RIL's outlook, with some brokerage firms maintaining a 'buy' rating and projecting further upside potential. The stock's sharp intraday rally today marks its strongest in nearly three years.

Why it matters

RIL's performance is a bellwether for the Indian economy, and its strong results signal resilience in key industrial sectors. The significant profit growth, particularly from the O2C business, indicates favorable global commodity cycles. The positive market reaction to RIL's earnings has provided a crucial boost to overall market sentiment, helping the benchmark indices extend their gains. This performance underscores the company's ability to capitalize on market opportunities and its strategic positioning across diverse business segments.

SEBI Proposes Removal of LTCG Tax for FPIs to Boost Inflows

In a significant development for India's capital markets, the Securities and Exchange Board of India (SEBI) has reportedly recommended to the government the removal of Long-Term Capital Gains (LTCG) tax for Foreign Portfolio Investors (FPIs). This proposal, part of SEBI's pre-budget representations, aims to enhance the attractiveness of Indian equities and reverse the trend of substantial FPI outflows witnessed in 2026, which amounted to ₹3.04 lakh crore.

Currently, FPIs are subject to a 12.5% LTCG tax on equity investments held for more than one year. The market regulator has also proposed tax relief for domestic mutual fund investors, suggesting an exemption from LTCG tax when they sell existing holdings to reinvest in new schemes. While these recommendations are not binding and the final decision rests with the government, likely to be announced in the Union Budget 2027-28, they address a consistent feedback point from foreign investors regarding India's tax structure. Global brokerage firms have indicated that any reduction in capital gains taxes could significantly boost foreign investment inflows into the Indian market.

What to watch next

The government's response to SEBI's recommendations will be closely watched by both domestic and international investors. A positive decision could lead to a substantial increase in FPI inflows, providing a strong tailwind for the Indian equity markets. The upcoming Union Budget 2027-28 will be the key event for any official announcement regarding these tax reforms.

More stocks and market news

Crude Oil Prices Ease Amid Peace Talks, Offering Relief

Global crude oil prices have seen a significant pullback today, with Brent crude futures falling to $110-$111 per barrel from recent highs that touched $118. This decline is attributed to ongoing Iran-Qatar peace talks aimed at resolving geopolitical tensions, easing concerns over supply disruptions from the Middle East. The softening of crude prices is a positive development for India, as elevated energy costs typically pressure the country's import bill, inflation outlook, and current account. While prices remain above the $100 per barrel mark, the current easing offers some relief and is contributing to the positive sentiment in the Indian equity markets.

Tata Motors Accelerates EV Expansion with New Models and Strong Sales

Tata Motors is aggressively expanding its electric vehicle (EV) portfolio, with plans to launch new models like the Safari EV, an all-new Kuno EV, and a next-generation Nexon EV in 2027 and beyond. The company aims to strengthen its dominant position in the passenger EV segment, where it currently holds over 40% market share. This expansion comes on the back of strong sales performance, with Tata Motors' Punch.ev becoming India's first standalone electric passenger car to cross 5,000 monthly wholesale dispatches in October 2026. Overall, the company's electric passenger vehicle sales surged by nearly 75% year-on-year in October 2026, reflecting robust demand and the success of its EV-first strategy.

Adani Ports Reports Robust October Cargo Growth

Adani Ports and Special Economic Zone (APSEZ) announced a strong operational performance for October 2026, reporting a 27% year-on-year increase in cargo volume to 51 million metric tonnes (MMT). This growth was primarily driven by a 36% rise in dry cargo volume and a 21% increase each in container and liquid cargo handling. Domestic port cargo volume also saw an 18% increase compared to October 2025. For the cumulative period of April-October FY27, APSEZ handled 331 MMT of cargo, marking a 16% YoY growth. This robust performance indicates healthy economic activity and strong demand in the logistics and trade sectors.

Market context

As of 2:00 PM IST, the Sensex is trading significantly higher, reflecting strong investor confidence. The Nifty 50 is also in positive territory, maintaining gains above 23,200. The Nifty Bank index shows modest gains. Globally, Asian markets largely traded higher, contributing to the positive domestic sentiment. Brent crude oil prices have eased to around $110-$111 per barrel, providing a favorable macro backdrop. The Indian Rupee, however, depreciated against the US dollar, trading around 94.97. FIIs were net buyers today, while DIIs were net sellers.

Why these stories matter

The strong earnings from Reliance Industries underscore the resilience of large Indian corporates and their ability to leverage global economic shifts, directly impacting broader market sentiment and index performance. SEBI's proposed tax reforms for FPIs are crucial for attracting foreign capital, which is vital for market liquidity and long-term growth, especially after a year of significant outflows. The easing of crude oil prices offers a significant positive for India's macro-economic stability, potentially alleviating inflationary pressures and improving trade balances. Tata Motors' aggressive EV expansion and strong sales figures highlight the accelerating transition to electric mobility and the growth potential within the automotive sector. Finally, Adani Ports' robust cargo growth serves as a key indicator of underlying economic activity and trade volumes, reflecting the health of the infrastructure sector.

What to watch next

• Further developments and official announcements regarding SEBI's LTCG tax recommendations in the upcoming Union Budget 2027-28.
• The trajectory of crude oil prices and the outcome of ongoing geopolitical talks.
• Upcoming Q2 FY27 earnings announcements from other major Indian companies.
• Global market cues, particularly from US and European markets, and their impact on FII flows.

Sources

• Upstox: RIL shares jump after Q2 FY27, Nov 2, 2026
• NDTV Profit: Reliance Industries Shares Jump Over 6% After O2C Drives Strong Q2 Results
• Livemint: Reliance Industries shares flying! Massive Monday jump for RIL stock - 6% surge strong Q2 results | Book profit or wait?
• Univest: Sebi Backs Removal of LTCG for Foreign Investors, Says Report: What the Proposal Means, Why FPI Outflows Hit Rs 3.04 Lakh Crore in 2026 and What Changes for Indian Investors
• HDFC Sky: Adani Ports' Cargo Volume Rises 27% In October; Shares Gain 0.46%

FAQ

1. Why are Indian markets rallying today?

Indian markets are rallying today primarily due to strong Q2 FY27 earnings reported by Reliance Industries, which saw its net profit increase by 40%. Additionally, easing crude oil prices and positive sentiment from SEBI's reported proposal to remove LTCG tax for FPIs are contributing to the positive momentum.

2. What is SEBI's latest proposal regarding FPIs?

SEBI has reportedly recommended to the government the removal of Long-Term Capital Gains (LTCG) tax for Foreign Portfolio Investors (FPIs). This move aims to make Indian equities more attractive and encourage foreign investment, especially after significant FPI outflows in 2026.

3. How are crude oil prices impacting the Indian market?

Crude oil prices have eased today, with Brent crude falling to $110-$111 per barrel. This pullback is a positive development for India, as lower crude prices can help reduce the country's import bill, ease inflationary pressures, and improve the current account deficit, thereby boosting market sentiment.

4. What are Tata Motors' recent EV developments?

Tata Motors is expanding its EV lineup with plans to launch new models like the Safari EV and Kuno EV in 2027. The company also achieved a milestone in October 2026, with its Punch.ev crossing 5,000 monthly wholesale dispatches, and overall EV sales growing by nearly 75% year-on-year.

5. What were Reliance Industries' key financial highlights for Q2 FY27?

For Q2 FY27, Reliance Industries reported a consolidated net profit attributable to shareholders of ₹25,548 crore, a 40% increase year-on-year. Its consolidated revenue rose 27.8% to ₹3,62,268 crore, with EBITDA reaching a record ₹62,409 crore, primarily driven by its Oil-to-Chemicals (O2C) business.

Disclaimer: This article is for educational purposes only. It does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.