Indian stock markets staged a strong recovery on Thursday, October 29, with the Sensex jumping 905 points and the Nifty 50 closing above the 22,900 mark as buying gathered pace across banking, fast-moving consumer goods (FMCG), power and infrastructure stocks. Easing crude oil prices, the US Federal Reserve’s decision to keep interest rates unchanged and renewed buying by institutional investors helped improve sentiment after two consecutive sessions of losses.
The BSE Sensex rose 905.01 points, or 1.24%, to settle at 74,151.04. The NSE Nifty 50 advanced 237.90 points, or 1.05%, to close at 22,936.75. The rally lifted broader markets as well, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining close to 1% each.
The recovery added nearly Rs 5 lakh crore to the combined market capitalisation of BSE-listed companies, taking it above Rs 477 lakh crore, according to market reports. The advance reflected buying across several sectors rather than gains concentrated in only a handful of heavyweight stocks.
Adani Ports emerged as one of the session’s strongest performers, rising more than 5% after reporting an 18% year-on-year increase in consolidated net profit to Rs 3,682.44 crore for the September quarter. Higher revenue supported the company’s performance, helping the stock attract investor interest.
Adani Enterprises also climbed sharply, gaining around 5.7% to rank among the leading Nifty 50 gainers. Kotak Mahindra Bank advanced close to 4%, while Power Grid Corporation rose more than 4%. Eternal also finished higher, supported by the broad improvement in market sentiment.
Other notable gainers included Bajaj Finance, State Bank of India, Hindustan Unilever, Titan, NTPC, Bharat Electronics and Infosys. Banking and consumer stocks were among the key contributors to the benchmark rally, while power and infrastructure shares benefited from the wider buying interest.
On the losing side, Trent was among the weakest Nifty 50 stocks, declining around 1.7%. Maruti Suzuki also fell, while Bajaj Auto, SBI Life Insurance and Eicher Motors featured among the other notable laggards. Auto stocks were the main exception to the broader rally, with the Nifty Auto index ending marginally lower.
The sectoral performance showed the breadth of the recovery. FMCG and real estate stocks led gains, while public sector banks, private banks, information technology, energy, infrastructure and consumer durables also advanced. The Nifty Realty index rose about 2.75%, the FMCG index gained around 2.34%, and the PSU Bank index climbed approximately 2.20%.
Market sentiment received support from the US Federal Reserve’s decision to leave its benchmark interest rate unchanged in the 3.75%-4% range. The move was broadly in line with expectations, easing uncertainty around the immediate direction of US monetary policy. Investors nevertheless remain attentive to signals about inflation, borrowing costs and the timing of any future rate changes.
Crude oil prices also eased, offering some relief to Indian equities. Lower oil prices can help India by reducing pressure on import costs, inflation and the country’s external balances. However, energy prices remain elevated, and developments in West Asia continue to pose a risk to global supply and investor confidence.
Institutional flows provided another source of support. Foreign institutional investors bought Indian equities worth Rs 871.83 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 643.35 crore, according to exchange data. Continued buying by foreign and domestic investors could help stabilise the market after recent volatility, although flows remain sensitive to global developments and valuations.
Expectations of a possible reduction in long-term capital gains tax also contributed to optimism, though no policy change has been confirmed. Investors are weighing such expectations against concerns over the rupee, global bond yields, geopolitical tensions and the outlook for corporate earnings.
The Indian rupee ended little changed at around Rs 95.26 against the US dollar, compared with Rs 95.22 in the previous session. The currency remains an important factor for investors because a weaker rupee can raise the cost of imports, particularly crude oil, while influencing foreign investment flows.
The market’s strong close marked a reversal from Wednesday, when the Sensex fell 352.64 points and the Nifty declined 50.90 points. Thursday’s rebound showed that investors were willing to buy into selected financial, consumer and infrastructure stocks when global cues improved.
However, analysts caution that one strong session does not necessarily signal a sustained upward trend. The next direction for the Sensex and Nifty will depend on corporate earnings, crude oil movements, foreign investor activity and global monetary policy. For now, the return of broad-based buying has provided some relief to investors, with the Nifty’s close above 22,900 emerging as a key level to watch.