Sensex jumps 700 points, Nifty holds above 22,850 as Fed pause and Q2 earnings lift sentiment
Benchmark indices extended gains in afternoon trade on October 29, tracking a global rally after the US Federal Reserve left interest rates unchanged at 3.75-4 percent.
After a flat start, the Sensex surged over 700 points to trade near 73,900, while the Nifty 50 hovered above 22,850, with an intraday high close to 22,900. Buying was broad-based across banking, FMCG and IT stocks, even as the ongoing Q2 earnings season kept stock-specific action in focus.
What is driving the rally
Fed pause eases global worries. The US central bank's decision to hold rates steady has cooled fears of an immediate exodus of foreign funds from emerging markets. The Fed's commentary hinted at possible tightening ahead, but for now the pause has been read as a relief.
Institutional buyers return. In the previous session, foreign institutional investors (FIIs) bought shares worth a net Rs 871.83 crore, while domestic institutional investors (DIIs) picked up Rs 643.35 crore, providing a cushion to the market.
Volatility cools. The India VIX, the market's fear gauge, fell 3-4 percent, encouraging traders to build fresh positions at lower levels.
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Market snapshot (intraday)
| Index | Level | Move |
|---|---|---|
| Nifty 50 | ~22,860+ | Intraday high near 22,900 |
| BSE Sensex | ~73,900+ | Up 700+ points |
| Bank Nifty | ~54,500+ | Firmly in the green |
| Nifty Next 50 | ~67,800+ | Up over 1% |
Technical view: Market experts see 22,900-22,950 as a strong resistance zone for the Nifty. A decisive move above it could trigger further short-covering, they said.
Q2 earnings: stock-wise reaction
Several heavyweights reported results during market hours, steering individual stocks.
Hyundai Motor India: Net profit declined 24 percent year-on-year to Rs 1,196.1 crore. However, the weak number was already priced in, and the stock rose 4-6 percent to trade above Rs 1,943.
Asian Paints: Net profit rose 7 percent to Rs 1,068 crore, slightly below Street estimates, though revenue of Rs 9,977 crore beat expectations. The stock was up about 0.8 percent in mild consolidation.
Adani Enterprises: Net profit dropped 54 percent year-on-year to Rs 1,492 crore, but the stock gained 2.5 percent amid the broader market strength.
Birlasoft: The stock zoomed over 12 percent on strong earnings and a Rs 3 dividend announcement.
PVR Inox: Shares traded close to their 52-week high after net profit more than doubled.
TVS Motor and Vedanta: Results announced late on October 28 also helped sentiment. TVS Motor reported a 52 percent jump in profit and Vedanta a 78 percent rise, lending support to the auto and metal sectors.
Crude and rupee remain key risks
Despite the strong recovery, two macro factors need watching.
Crude oil: Brent crude, though slightly off its highs, is hovering near $114 a barrel. As India imports most of its oil, a sustained spike could widen the fiscal deficit.
Rupee: The rupee was trading at 95.31 against the US dollar. A strong greenback and costly crude could pressure input costs and margins for Indian companies in coming quarters.
What to watch
Coal India, Trent and InterGlobe Aviation (IndiGo) are scheduled to announce their quarterly numbers after market hours. Today's closing levels and these evening earnings are likely to set the tone for trade on October 30.
Source: NSE and BSE intraday data; US Federal Reserve policy statement
