The Indian stock market moved higher on Thursday, October 29, as the Sensex gained more than 500 points and the Nifty 50 climbed above 22,850 in morning trade. Buying interest improved following the US Federal Reserve’s decision to keep interest rates unchanged. Gains across several heavyweight stocks also supported the recovery, although concerns about crude oil prices, global economic uncertainty and expiry-related volatility remained.
The BSE Sensex advanced more than 500 points to around 73,798, while the NSE Nifty 50 rose over 150 points to trade above 22,850. Both benchmark indices gained approximately 0.5%, recovering some ground after Wednesday’s decline. The positive movement extended to midcap and smallcap stocks, indicating that buying interest was not restricted to the largest companies.
The rebound came after a subdued session on Wednesday, when investors reduced their exposure to several heavyweight stocks. The Sensex fell 352.64 points, or 0.48%, to close at 73,246.03, while the Nifty 50 declined 50.90 points, or 0.22%, to settle at 22,698.85. Caution ahead of the Federal Reserve’s monetary policy announcement had weighed on sentiment.
Adani Ports and Power Grid emerged among the leading gainers on the Sensex during morning trade, with both stocks rising nearly 3%. Kotak Mahindra Bank, NTPC, Reliance Industries, Titan, Hindustan Unilever and ITC also advanced, recording gains of up to 2%.
Trent was among the prominent losers, falling around 2% despite the broader market’s recovery. Its decline highlighted the uneven performance of individual stocks, with company-specific developments continuing to influence investor decisions.
Sectoral indices largely traded in positive territory. FMCG, public sector banks and consumer durables were among the better-performing segments, with gains of up to 1%. The Nifty Auto index moved lower by around 0.45%, making it a notable exception to the broader upward trend.
Market breadth was positive during the morning session. On the NSE, 1,809 stocks advanced against 1,337 declines, while 105 remained unchanged. This indicated that the recovery had spread across a considerable section of the market rather than being driven exclusively by a few heavyweight stocks.
The US Federal Reserve kept its benchmark interest rate in the range of 3.75% to 4%, broadly meeting market expectations. The decision provided some relief to investors who had been waiting for clarity on the direction of US monetary policy.
The Fed’s decisions are closely watched by Indian investors because US interest rates influence international capital flows, currency movements and borrowing costs. A stable rate environment can support emerging-market equities, although the impact depends on the outlook for future policy changes.
However, the decision did not remove concerns about inflation, US bond yields and the strength of the dollar. Higher yields can make US assets more attractive to global investors, potentially limiting foreign investment in Indian equities. Traders will therefore continue to monitor economic data and further signals from the US central bank.
Crude oil prices continued to be an important factor for domestic equities. Brent crude slipped around 1% to approximately $114 per barrel during early trade, but remained elevated amid concerns about potential supply disruptions in the Middle East.
India’s dependence on imported oil makes price movements particularly important for its economy. Higher crude prices can increase the country’s import bill, put pressure on the rupee and add to inflation. They can also raise transportation and production costs, affecting company earnings and consumer spending.
A sustained decline in oil prices could improve the outlook for Indian equities by easing some of these pressures. Until then, investors are likely to remain cautious about sectors that are particularly sensitive to energy costs.
Technical indicators and important trading levels will remain in focus as investors assess whether the recovery can continue. Market strategist Anand James of Geojit Investments indicated that the Nifty could initially fluctuate around 22,725, with 22,840 and 22,500 serving as important reference levels.
His assessment suggested that the index could move towards 23,050-23,600 if buying momentum strengthens and it avoids closing below 22,660. These levels are technical estimates rather than guaranteed market targets.
Investors will also monitor GIFT Nifty, global equity movements, foreign institutional investor activity and quarterly earnings for further direction. Expiry-related activity could add to intraday volatility, making sharp price movements possible even if the overall market remains positive.
Overall, Thursday’s recovery improved sentiment after the previous session’s losses. However, the sustainability of the rally will depend on continued buying, corporate earnings, global market trends and movements in crude oil prices. Investors are likely to remain selective as they balance the support from the Federal Reserve’s decision against continuing economic and geopolitical uncertainties.