Mumbai, October 29, 2026: Dalal Street staged an emphatic comeback on Thursday as domestic benchmark equity indices rebounded with force, rising over 1% to decisively erase the previous two sessions’ losses. A combination of the US Federal Reserve’s anticipated interest rate pause, a modest softening in international crude prices, and renewed buying by foreign institutional investors revitalized risk appetite across the board.
The 30-share BSE Sensex settled at 74,151.04, surging 905.01 points or 1.24% at the closing bell. After opening slightly higher at 73,268.47 against Wednesday’s close of 73,246.03, the index dipped to an early low of 73,181.90. However, persistent accumulation across consumption, realty, banking, and heavyweight conglomerates drove an unbroken 984-point ascent to touch a session peak of 74,166.16 before closing just a few points off its high.
The NSE Nifty 50 advanced 237.90 points or 1.05% to finish at 22,936.75. The 50-share benchmark opened flat at 22,690.65, tested an intraday low of 22,656.75, and rallied 305 points to hit an intraday high of 22,961.95, comfortably reclaiming the 22,900 mark.
Intraday charts reflected sustained buying momentum from morning trade through the final bell, punctuated only by shallow midday consolidations. Broader market participation remained buoyant throughout the session: 2,502 stocks advanced on the BSE against 1,638 declines, while the Nifty Midcap 100 gained 0.98% and the Smallcap 100 rose 0.93%.
Three Pillars Driving the Market Turnaround
- Federal Reserve Hits the Pause Button: The US Federal Open Market Committee (FOMC) voted 10–2 to keep benchmark interest rates steady within the 3.75%–4.00% target range. While the policy statement under Chairman Kevin Warsh acknowledged elevated price pressures—citing higher energy costs, supply-chain tariffs, resilient consumer spending, and AI infrastructure demand—the decision provided relief to global markets and supported positive sentiment across Wall Street and Asian bourses.
- Crude Softens Off Recent Highs: International oil benchmarks edged lower following Wednesday’s sharp spike triggered by the Houthi drone and missile strikes on Saudi Arabia’s Ras Tanura refinery. Brent crude futures slipped 0.8% to trade around $114.50 per barrel, while West Texas Intermediate (WTI) eased below $102. Although crude remains near six-month highs, the pause in the rally offered immediate breathing room for energy-importing economies like India.
- Renewed Institutional Accumulation: Institutional flows swung back into positive territory. Foreign Institutional Investors (FIIs) turned net buyers alongside Domestic Institutional Investors (DIIs), who poured in ₹643 crore according to provisional exchange data. Market breadth expanded broadly as retail and institutional investors diversified exposure beyond large-cap names.
Sectoral Landscape: Realty, FMCG, and PSU Banks Lead as Auto Drags
Buying was evident across cyclical and interest-rate-sensitive sectors:
- Top Sectoral Performers: Nifty Realty spearheaded gains with a 2.75% advance, followed closely by Nifty FMCG (up 2.34%) and Nifty PSU Bank (up 2.20%). Financial Services, IT, and Utilities also posted robust gains.
- Frontline Gainers: Adani Ports led the Nifty with a 6.2% jump, while Adani Enterprises surged 5.7%. Power Grid gained 4.2%, and Kotak Mahindra Bank contributed the most index points to the Sensex’s rise. Heavyweights Hindustan Unilever (HUL), NTPC, ITC, and Reliance Industries (up 1.5%) added substantial weight to the rally, while TCS and Infosys recovered 0.6% to 0.9%. Mid-tier IT firm Birlasoft climbed over 9% to ₹344 following a standalone net profit of ₹120.5 crore and a ₹3 interim dividend. Jio Platforms continued its strong post-debut run, rising 3.5% to ₹1,419 on its second day of trading, sustaining a market capitalization near ₹13 lakh crore.
- Sectoral Laggards: Nifty Auto was the only sectoral index to finish in the red, down 0.24%, weighed down by margin concerns and post-earnings selling in Hero MotoCorp and Maruti Suzuki. Trent, SBI Life, Bajaj Auto, and Hindalco were among the session’s notable large-cap laggards.
Corporate Radar: TVS Motor Net Surges 52%, Hero MotoCorp Margin Shrinks, Adani Prints Robust
Thursday’s session saw another wave of major corporate earnings announcements:
- TVS Motor Co.: Net profit surged 52% YoY to ₹1,377 crore (up from ₹904 crore), driven by broad-based two-wheeler volume expansion, with revenue rising 44% to ₹17,103 crore. The board approved demerging its consumer finance business into a dedicated non-banking financial company. Shares closed flat at ₹4,225 after testing an intraday high of ₹4,300.
- Hero MotoCorp: Consolidated net profit rose 42% YoY to ₹1,861.3 crore on revenue of ₹14,971 crore, supported by a ₹397-crore gain linked to its Ather Energy associate stake. On a standalone basis, net profit grew 4.5% to ₹1,456.22 crore as dispatches increased 10% to 18.68 lakh units, led by a 47% rise in scooter sales and a 76% surge in VIDA electric two-wheelers. However, standalone operating EBITDA margins compressed to 13.4% (from 15.03%), causing the stock to slide 3% to ₹5,151.50 as headline profit missed analyst estimates. The board greenlit a ₹300-crore investment for Latin American expansion and a ₹3,200-crore global parts facility in Tirupati.
- Two-Wheeler Scorecard Comparison: Comparing performance across major players, TVS Motor delivered the fastest revenue expansion at 43.7%, Bajaj Auto maintained the highest absolute profitability with a quarterly PAT of ₹3,354 crore, and Hero MotoCorp posted steady volume dispatches at 18.68 lakh units.
- Adani Group and Consumer Majors: Adani Enterprises recorded a standalone quarterly PAT of ₹1,224.45 crore, while Adani Ports posted a net profit of ₹940.97 crore. FMCG bellwether HUL logged an 8% profit growth with standalone PAT touching ₹2,844 crore. Other earnings highlights included KPR Mill jumping 152% in net profit to ₹334.25 crore, United Spirits gaining 4% to ₹1,278 despite a 7.7% drop in PAT, and Pidilite rising 2% on a 7.2% PAT increase to ₹626.46 crore.
Global Currencies and Technical Outlook: Nifty Reclaims 20-DMA
On the macroeconomic front, the US Dollar Index softened 0.2% to trade around 102.15–102.25. The Indian rupee opened 11 paise stronger at 95.17 against the greenback following the Fed decision before settling lower near 95.37 due to sustained dollar demand from oil importers. Bullion eased on domestic exchanges, with MCX gold declining by ₹646 to ₹1,43,492 per 10 grams and silver retreating 1.36% to ₹1,91,686 per kg.
From a technical perspective, the Nifty 50 cleanly reclaimed its 20-day moving average (20-DMA) with a decisive breakout from short-term consolidation, lifting its daily Relative Strength Index (RSI) back above the 50 mark.
- Key Technical Levels:
- Support: Immediate downside support is established at the 22,800–22,830 band, backed by the 20-DMA. Sustained trade above 22,800 keeps the short-term upward momentum intact.
- Resistance: The primary psychological hurdle is pegged at 23,000, followed by intermediate resistance at 23,080–23,100, with secondary swing resistance positioned at 23,175–23,250.
- BSE Sensex: Downside cushion is placed at 73,200–73,500, with overhead supply anticipated near 74,200 and the 74,500 mark.
Market analysts note that while central bank predictability and domestic earnings resilience have stabilized market sentiment, elevated global oil prices and currency pressures will require disciplined stock-specific selection, favoring FMCG, private lenders, and capital goods counters on constructive pullbacks.
