Nifty surges past 22,900, Sensex jumps 905 points as Fed pause, crude dip lift

SENSEX 74,151.04

+ 905.01

NIFTY 22,936.75

+ 237.90

CRUDEOIL 9,711.00

 -87.00

GOLD 143,102.00

 -603.00

SILVER 191,099.00

 -3,226.00

SENSEX 74,151.04

+ 905.01

NIFTY 22,936.75

+ 237.90

NIFTY 22,936.75

+ 237.90

CRUDEOIL 9,711.00

 -87.00

CRUDEOIL 9,711.00

 -87.00

GOLD 143,102.00

 -603.00

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India VIX declines over 6% to around 15.14, signalling a meaningful easing in near-term volatility expectations

By Anupama Ghosh

Updated - October 29, 2026 at 05:44 PM.

The Sensex had opened at 73,268.47, touched an intraday low of 73,181.90, and surged to a high of 74,166.16 before closing near the day’s peak.

Markets staged their strongest single-day rally in weeks on Thursday, with the Sensex closing at 74,151.04, up 905.01 points or 1.24 per cent, and the Nifty 50 ending at 22,936.75, gaining 237.90 points or 1.05 per cent, as a combination of the US Federal Reserve’s rate hold, easing crude oil prices and renewed institutional buying drove broad-based gains across sectors.

Ajit Mishra, SVP, Research at Religare Broking, noted that ”buying was visible across several pockets, with realty, FMCG and select banking stocks leading the recovery,” adding that ”sustained buying across sectors will be essential to establish a more durable recovery.” The India VIX declined over 6 per cent to around 15.14, signalling a meaningful easing in near-term volatility expectations.

The Sensex had opened at 73,268.47, touched an intraday low of 73,181.90, and surged to a high of 74,166.16 before closing near the day’s peak. The Nifty opened at 22,690.65, slipped briefly to 22,656.75, then climbed to 22,961.95 before settling at 22,936.75. The rally breached the 22,800 level that analysts had flagged as the critical resistance through the morning and midday sessions.

FMCG, PSU Bank shine

Nifty FMCG led sectoral gains at 2.3 per cent, followed by Nifty PSU Bank at 2.2 per cent, while Realty, Banking, Financial Services and IT also closed higher. Nifty Auto was the sole major sectoral laggard, declining 0.2 per cent. The Nifty Midcap 100 and Nifty Smallcap 100 each rose approximately 1 per cent, reflecting healthy broader market participation.

The primary catalyst was the US Federal Reserve’s decision to hold its benchmark rate at 3.75 per cent–4.00 per cent, though the 10-2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting in favour of a hike, kept a December increase firmly in play. The US 10-year Treasury yield, which had touched 5.02 per cent after the Fed decision, retreated toward 4.9 per cent, offering some relief to equity valuations globally.

Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the yield retreat ”does not yet signal a sustained easing in global financial conditions, with expectations of a further Federal Reserve rate increase continuing to weigh on sentiment.”

Crude drops

Crude oil prices eased on Thursday after Wednesday’s sharp rally, with Brent slipping below $114 a barrel and WTI trading near $101, as renewed diplomatic engagement between Washington and Tehran prompted some unwinding of the geopolitical risk premium.

Kaynat Chainwala, AVP Commodity Research at Kotak Neo, noted that ”the prospect of dialogue has encouraged some unwinding of the recent risk premium, prompting profit-taking,” while cautioning that ”oil prices remain well supported as traders continue to monitor developments surrounding Saudi energy infrastructure.”

Ankur Punj, Managing Director at Equirus Wealth, said ”elevated crude oil prices continued to weigh on investor sentiment, keeping gains measured,” and that ”going forward, investors are likely to remain watchful of crude oil price movements and global cues.”

On the currency front, the Indian rupee finished the session at 95.26, supported by foreign institutional buying in equities, central bank intervention and softer crude prices. Dilip Parmar, Senior Research Analyst at HDFC Securities, said spot USD/INR is likely to ”cap gains near resistance at 95.50, while finding support around 95.05,” with the rupee expected to see a ”steady depreciation path toward 95.50 prior to recovering some ground.”

Finance Ministry ups growth estimate

Domestically, the Finance Ministry revised its Q2 FY27 GDP growth estimate upward to 7.35 per cent from 7.3 per cent, supported by industrial output, GST collections and port traffic data.

Industrial Production growth for September came in at 6.7 per cent, moderating from 8 per cent in August.

The government also approved a 3-percentage-point hike in Dearness Allowance for central government employees, effective July 1, 2026, at an annual cost of ₹10,016.10 crore, a measure expected to provide a modest lift to household consumption.

Additionally, the Cabinet cleared a ₹10,000 crore Container Manufacturing Promotion Scheme through FY 2039-40 and the Pradhan Mantri Viksit Gram Swaraj Yojana with a ₹7,395.55 crore outlay.

On the commodities front, spot gold eased below $4,030 after settling above $4,065 in the prior session, while silver extended its decline below $52.50, as markets held back ahead of US core PCE inflation, GDP and jobless claims data due later in the global day.

What’s ahead?

Looking ahead, Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said ”Indian market recovery is likely to continue, supported by hopes of peace talks between the US and Iran, improving domestic growth expectations and intermittent buying by FIIs.” Markets will watch US GDP and labour market data, the Bank of Japan’s policy decision on Friday, and earnings from Varun Beverages, Welspun Living and Vinati Organics. Shrikant Chouhan, Head of Equity Research at Kotak Neo, said 22,800 and 22,750 on the Nifty would now act as ”key support zones for trend-following traders,” with the rally potentially extending toward ”23,100–23,175 on the higher side.”

Published on October 29, 2026

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