Sensex Rockets 905 Points: US Fed Decision Sparks Massive Market Rally
BSE Sensex and Nifty 50 rally as US Federal Reserve holds interest rates steady, sparking institutional buying and a ₹5 lakh crore market cap boost.
The Indian stock markets surge in a powerful rally, with the BSE Sensex leaping by 905.01 points on Thursday, October 29, 2026. This bullish momentum was primarily triggered by the US Federal Reserve's decision to maintain current interest rates, coupled with a slight dip in crude oil prices and a return of institutional investors to the buying side.
By the closing bell, the BSE Sensex had climbed 1.24 percent to settle at 74,151.04. Similarly, the Nifty 50 index mirrored this growth, rising 1.05 percent or 237.90 points to close at 22,936.75.
The Federal Reserve Factor
The catalyst for the day's excitement was the Federal Open Market Committee (FOMC) meeting. In a 10-2 vote, the committee decided to keep benchmark interest rates unchanged within the 3.75 percent to 4 percent range. While the pause provided relief to global markets, the split vote highlighted internal tensions within the Fed regarding stubborn inflation levels.
Hariselvan Radhakrishnan, CEO of HST Wealth, pointed out that the rally was further fueled by the US 10-year Treasury yield retreating toward the 4.9 percent mark, which typically encourages investment in emerging markets like India.
Market Breadth and Capitalization
The positivity was widespread across the trading floor. A total of 2,443 stocks ended the day in the green, while 1,615 declined and 127 remained flat. This massive uptick led to a staggering increase in the total market capitalization of BSE-listed companies, which grew by nearly ₹5 lakh crore, pushing the total valuation beyond ₹477 lakh crore.
Institutional Support
Confidence returned as both foreign and domestic giants poured money back into the market. On Wednesday, Foreign Institutional Investors (FIIs) bought equities worth ₹871.83 crore, while Domestic Institutional Investors (DIIs) contributed an additional ₹643.35 crore in purchases.
Sectoral Winners and Losers
The rally was led by several key sectors, with the Nifty FMCG index taking the lead with a 2.5 percent gain. Other strong performers included:
- Realty: Over 2 percent increase
- Private Bank: Up 1.98 percent
- PSU Bank: Up 1.9 percent
- Media: Up 1.2 percent
- IT: Up 1 percent
In contrast, the Nifty Auto sector was the only index to finish the day in negative territory.
Top Gainers and Drags
Adani Ports & Special Economic Zone emerged as the star of the Nifty 50, surging 6.3 percent on the back of robust profits and an improved outlook for operating profits. Other notable gainers included Adani Enterprises, Kotak Mahindra Bank, Power Grid Corporation, and Eternal.
On the flip side, the day was tough for Trent, Maruti Suzuki, Bajaj Auto, SBI Life Insurance, Eicher Motors, and Hindalco, all of which featured among the top losers.
Expert Outlook: Optimism Tempered by Caution
While the mood was celebratory, analysts warned that the path ahead remains complex. Vinod Nair, Head of Research at Geojit Investments, noted that while institutional flows have improved risk appetite, investors must keep an eye on the weak rupee—which traded at 95.22 against the US dollar—and ongoing geopolitical tensions.
Adding to the caution, Brent crude oil remained at elevated levels, trading between $114 and $115 per barrel. Thomas Priju, Portfolio Manager at Karma Capital, cautioned that the Fed's decision to hold rates should not be seen as a definitive "dovish" signal, citing the divided FOMC vote and persistent inflation as potential sources of future volatility.
However, there is a silver lining. Arun Malhotra of CapGrow Capital suggested that the market may be "bottoming out," supported by a generally positive earnings season.