Summary:
The Indian stock market rallied on October 29, 2026, with Sensex surging 905 points and Nifty gaining 238 points. The recovery was driven by the US Fed holding interest rates steady, falling crude oil prices and domestic institutional buying.
Indian equity markets witnessed a sharp rebound on Thursday, 29 October 2026, with the BSE Sensex gaining 905.01 points (+1.24%) to close at 74,151.04. The NSE Nifty 50 rose 237.90 points, or 1.05%, to 22,936.75. The rally, the biggest single-day gain in two weeks, followed the US Federal Reserve's decision to hold interest rates steady, easing crude oil prices and buying across major sectors.
Sensex & Nifty Record Good Gains After Recent Weakness
The Sensex opened at 73,268.47 against the previous close of 73,246.03. The index dropped to a low of 73,181.90 during the day but rebounded sharply to touch 74,166.16 and ended near the day's high.
The bounce back comes after a tough time for Indian equities. Both benchmark indices had fallen some 2% in the past seven sessions.
Not just buying heavyweight stocks. 15 out of the 16 major sectoral indices were up. Broader markets joined in too. The Nifty Midcap 100 and Nifty Smallcap 100 gained about 1% each.
What Caused the Stock Market to Surge on October 29?
There were three major developments behind the market’s recovery.
1. US Federal Reserve Holds Interest Rates Steady
US Federal Reserve maintained its benchmark interest rate at 3.75%-4% on October 28, 2026.
The decision eased near-term worries of more monetary tightening. Lower US bond yields also helped equity markets, lifting sentiment toward emerging-market assets such as India. Inflation in the US, however, remained high and the outlook on future interest rate decisions was still unclear.
2. Crude Oil Prices Decline
Brent crude was down 0.8% at $114.40 a barrel giving some relief to Indian equities.
India is heavily reliant on imported crude oil. Higher prices increase import costs, putting pressure on the rupee and can increase inflation risks. The modest decline helped sentiment although geopolitical tensions remained to keep oil prices elevated.
3. Domestic Purchase and Income
Domestic institutional investors (DIIs) bought shares worth ₹1,924.41 crore on October 29, whereas foreign institutional investors (FIIs) sold shares worth ₹943.60 crore.
This resulted in a net institutional inflow of ₹980.81 crore into the combined. Some companies' positive quarterly earnings also helped buying, particularly in financial, infrastructure and consumer-related stocks.
Market Outlook: Will the Recovery Last?
The short-term sentiment improved with Thursday’s rally and Nifty managed to reclaim 22,900. Sensex too reclaimed 74,000.
But one strong session doesn’t mean a sustained market reversal. Key risks include higher crude oil prices, geopolitical developments and continued selling by foreign institutions.
The next few sessions will show whether the recovery is attracting sustainable buying. “Corporate earnings, institutional flows, global interest rate expectations and movement in crude oil will remain important factors determining market direction.
