Sensex, Nifty trade higher after US Fed holds rates; crude oil remains a concern

At around 9.33 am, the BSE Sensex was trading at 73,405.12, up 159.09 points or 0.22%. The NSE Nifty 50 rose 39.65 points, or 0.17%, to 22,738.50.

In Short

• Stock market opened cautiously but rose after US Fed held rates
• Crude prices high, foreign investor outflows remain concerns
• Experts warn of impact on rupee, inflation, and trade deficit

Stock market opened on a cautious note on Thursday, October 29, but moved higher in early trade after the US Federal Reserve kept interest rates unchanged, as expected. Elevated crude oil prices and continued foreign investor outflows, however, remain key concerns for the market.

At around 9.33 am, the BSE Sensex was trading at 73,405.12, up 159.09 points or 0.22%. The NSE Nifty 50 rose 39.65 points, or 0.17%, to 22,738.50.

The Nifty had opened at 22,690.65, while the Sensex started the session at 73,268.47. The early gains came despite crude oil prices remaining elevated, with Brent crude trading at $113.97 per barrel, down 1.17%, and WTI crude at $101.43, down 1.31%.

IT STOCKS LEAD GAINS

IT stocks were among the key supports for the market in early trade. The Nifty IT index rose 0.65%, with TCS gaining 1.19%, Infosys advancing 0.66%, HCLTech rising 0.69% and Tech Mahindra up 0.39%.

Other major gainers included Adani Ports, which rose 2.33%, Power Grid, up 1.47%, and NTPC, which gained 1.13%. Reliance Industries advanced 1.02%, while Titan rose 0.95%.

However, the market's gains remained uneven. Larsen & Toubro fell 0.82%, Trent declined 1.72%, Maruti slipped 0.74% and Bajaj Finserv lost 0.84%.

Broader markets traded in positive territory, with the Nifty Midcap 100 rising 0.21% and the Nifty Smallcap 100 gaining 0.30%. India VIX, the market volatility gauge, fell 0.58% to 16.15, indicating a slight easing in near-term nervousness.

Among sectoral indices, Nifty PSU Bank rose 0.66%, while media gained 0.58% and pharma advanced 0.31%. Metal, financial services and private bank indices also traded higher. Auto and realty stocks were among the weaker pockets, while FMCG and chemicals remained under pressure.

US FED HOLDS RATES; FOREIGN FLOWS, OIL IN FOCUS

The US Federal Reserve kept interest rates unchanged on Wednesday, as expected, delaying any changes to borrowing costs while it awaits further inflation data. The Fed said inflation remained elevated.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the decision was mildly positive for global equity markets, but added that India continued to face significant headwinds.

He pointed to the US 10-year bond yield hovering around 5%, elevated crude prices and foreign investor flows as factors weighing on the domestic market. He also said foreign money could continue to favour artificial intelligence-related stocks in markets such as South Korea and Taiwan, rather than Indian equities.

Vijayakumar said expectations of long-term capital gains tax relief in the coming Budget were increasing, citing foreign portfolio investor outflows of $31 billion so far in 2026. He warned that persistently high crude prices could widen India's trade and current account deficits, put pressure on the rupee and add to imported inflation.

Investors will continue to track crude oil prices, foreign fund flows and global interest-rate signals for direction through the session.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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