Sensex Jumps 550 Points, Nifty Crosses 22,850 as FMCG and PSU Bank Stocks Rally

Stock Market Today: Sensex Jumps Over 550 Points, Nifty Near 22,850 as FMCG and PSU Banks Rally

Indian equity markets traded firmly higher on Thursday, October 29, as buying across major sectors lifted benchmark indices in morning trade. The Sensex gained more than 550 points, while the Nifty moved close to the 22,850 mark, supported by strong performances in FMCG, banking and information technology stocks.

Improving sentiment across the broader market and a decline in the India VIX also provided support to the rally. However, elevated crude oil prices, uncertainty surrounding global monetary policy and geopolitical tensions remained key risks for investors.

At 10:45 am, the BSE Sensex stood at 73,796.77, up 550.74 points or 0.75% from its previous close of 73,246.03. The NSE Nifty 50 advanced 148.50 points or 0.65% to 22,847.35, compared with its previous close of 22,698.85.

The rally gained momentum after a relatively modest opening. The Sensex climbed from around 73,395 at 9:26 am to nearly 73,800 by 10:45 am, reflecting sustained buying in heavyweight shares.

Why Is the Stock Market Rising Today?
Several domestic and global factors appeared to support the upward movement in Indian equities.

1. US Federal Reserve Holds Interest Rates Steady
The US Federal Reserve’s decision to maintain its benchmark interest rate in the 3.75%-4% range provided an important backdrop for global financial markets. The move was broadly in line with expectations, allowing investors to assess the central bank’s outlook for inflation and economic growth.

However, the decision does not necessarily signal an easing of monetary policy. Persistent inflation concerns and the possibility of further tightening remain relevant risks, while the 10-2 voting split highlights differences among policymakers over the appropriate policy direction.

Investors are likely to continue monitoring signals from the Fed for clues about global liquidity, bond yields and foreign investment flows into emerging markets such as India.

2. Crude Oil Prices Ease Amid Diplomatic Hopes
A decline in crude oil prices during early trade offered some relief to market sentiment as hopes of diplomatic efforts to ease tensions in the Middle East resurfaced.

Brent crude was trading at around $114.50 per barrel, while US West Texas Intermediate (WTI) crude hovered near $102 per barrel.

Despite the easing, oil prices remained elevated. For India, which relies heavily on imported crude, sustained high prices can increase the import bill, intensify inflationary pressures and put pressure on the rupee. Any further escalation in geopolitical tensions could also trigger renewed volatility in financial markets.

3. Buying Returns After Wednesday’s Decline
The benchmarks also benefited from renewed buying after the previous session’s losses.

On Wednesday, the Sensex fell 352.64 points, while the Nifty 50 declined 50.90 points to close at 22,698.85.

The subsequent rebound may reflect bargain hunting and short covering as investors returned to select stocks following the decline. However, the available index movements do not establish the precise contribution of these factors.

Continued buying in heavyweight shares helped the benchmark indices extend their gains through Thursday morning.

4. Broader Markets Join the Rally
The positive sentiment extended beyond the frontline indices, with several broader-market benchmarks also trading higher.

The Nifty 100 advanced 0.62%, while the Nifty 500 gained 0.53%. The Nifty Midcap 100 rose 0.47%, and the Nifty Smallcap 100 climbed 0.62%.

The gains indicate that buying interest was not limited to a small group of large-cap companies. However, the Nifty Smallcap 250 remained nearly unchanged, suggesting that the recovery was uneven across market segments.

5. India VIX Drops 3.40%
The India VIX, a measure of market-implied near-term volatility, declined 3.40% to 15.69 from its previous close of 16.25.

A lower VIX generally signals reduced expectations of near-term market fluctuations and can accompany a recovery in equities.

Nevertheless, the decline does not guarantee that the upward trend will continue. Investors remain exposed to changes in crude oil prices, global interest-rate expectations, foreign institutional investment flows and geopolitical developments.

Sectoral Indices: FMCG and PSU Banks Lead the Rally
Most sectoral indices traded in positive territory, with FMCG and banking shares emerging as leading gainers.

The Nifty FMCG index advanced 1.54%, recording the strongest gain among the highlighted sectors. The Nifty PSU Bank index rose 1.12%, while the Nifty Private Bank index gained 0.77%. The Nifty IT index also moved higher by 0.72%.

Other sectors recorded gains as well. The Nifty Consumer Durables index advanced 0.67%, while the Nifty Healthcare index climbed 0.55%. Metal, pharmaceutical and oil and gas stocks also traded higher.

Auto shares bucked the broader trend, with the Nifty Auto index falling 0.46%. The Nifty Chemicals index also traded marginally lower.

The sectoral performance points to strong buying in consumer goods and banking stocks, although weakness in select segments shows that the rally was not uniform.

Sensex Movers: Adani Ports and Power Grid Among Top Gainers
Among Sensex constituents, Adani Ports led the advances, rising 4.21%. Power Grid followed with a gain of 3.48%, while Kotak Mahindra Bank climbed 2.89%.

Hindustan Unilever advanced 2.65%, and ITC gained 1.93%. NTPC, Reliance Industries, Titan, Tata Consultancy Services (TCS) and Infosys were also trading higher.

On the losing side, Trent declined 2.01%, making it the biggest laggard among the stocks highlighted. Maruti Suzuki slipped 0.22%, while Mahindra & Mahindra, HDFC Bank, Tata Steel and Asian Paints traded marginally lower.

The gains in Adani Ports, Power Grid and banking shares provided support to the benchmark, while losses in select consumer, automobile and other heavyweight stocks limited the advance.

What Should Investors Watch Next?
The market’s direction will depend on whether buying momentum persists and how investors respond to global economic and geopolitical developments.

Crude oil prices remain a key variable for India because sustained increases can affect inflation, corporate costs and the country’s external balance. Developments in US monetary policy and foreign fund flows could also influence market sentiment.

For now, the Sensex and Nifty have recovered from Wednesday’s decline, with FMCG and PSU banking stocks leading the advance. Investors will be watching for sustained buying, broader market participation and changes in volatility to assess whether the rebound can continue.