Foreign institutional investors extended their buying streak for a second consecutive session on November 2, purchasing equities worth Rs 3,114 crore while domestic institutional investors remained net sellers for the second straight session, offloading equities worth Rs 392 crore.

Indian benchmarks ended higher for a third straight session, with the Nifty 50 index crossing the 23,300 mark supported by strong buying in heavyweight stocks, particularly Reliance Industries. RIL shares rallied over 11% after reporting strong Q2 earnings, marking their biggest single-day gain since April 2020. The rally pushed Reliance's market capitalisation past Rs 17 lakh crore.

At close, the Sensex was up 1,233.25 points or 1.66 percent at 75,692.78, and the Nifty was up 387.70 points or 1.68 percent at 23,440.80.

GIFT Nifty indicated a strong opening for November 3, trading at 23,551.50 in early trade, signaling a gap-up start for the domestic equity markets.

Asian markets opened lower following a selloff in US chipmakers, overshadowing a plunge in oil prices on optimism over diplomatic progress toward ending the war in Iran. The MSCI Asia Pacific gauge dropped 0.4% with South Korea's Kospi Index sliding almost 3%.

US equities ended mixed on November 2, with the S&P 500 declining 0.51% to 7,541.40 points, the Nasdaq dropping 1.07% to 25,164.32 points, while the Dow Jones Industrial Average rose 0.41% to 51,983.98 points.

Oil prices steadied after slumping on Monday, with West Texas Intermediate trading near $96 a barrel after sinking 7.4% and Brent closing below $105, following signals from the US and Iran signaling willingness to pursue peace talks.

Gold was steady after jumping the most in two months on Monday, trading above $3,950 an ounce on hopes of a breakthrough in US-Iran peace talks that eased anxiety over accelerating inflation.

The US 10-year Treasury note yield was steady at 4.9145%, while the 30-year bond yield was flat at 5.2868%. Asian currencies traded on a mixed note against the US dollar, with the Philippine peso gaining the most, rising 0.23 percent.

The dollar index last traded at 101.76 after dropping to a one-month low on Monday on hopes for a diplomatic breakthrough between the US and Iran.