Sensex jumps 905 points as Fed holds rates steady (29 Oct)
- The Sensex rose 905 points to close at 74,151.
- Investors gained ₹3 lakh crore in total market wealth.
- The US Federal Reserve kept interest rates unchanged at 3.9 percent.
- Nifty FMCG led sectoral gains with a 2 percent rise.
- The Indian rupee strengthened to 95.17 per US dollar.
The BSE Sensex closed at 74,151.04 on Thursday, October 29, 2026, rising 905.01 points from the previous close of 73,246.03. The indices rallied after the United States Federal Reserve left interest rates unchanged.
Earlier in the day, the Sensex jumped 850 points, while the Nifty traded above 22,900. Other reports showed the Sensex rising 645 points to 73,891.49 by 1:36 pm IST.
The Nifty 50 climbed 171.75 points to 22,870.60 on Thursday. Earlier reports indicated the Nifty was nearing 22,900 or hovering around 22,850 and 22,875.
Investors gain ₹3 lakh crore in market wealth
Investors gained ₹3 lakh crore in market wealth during the stock market rally.
Market breadth remained positive on the National Stock Exchange with 1,995 advancing stocks against 1,228 declining stocks. There were 105 stocks that remained unchanged.
Different reports identified six key factors contributing to the market gains. One report identified three reasons for the current rise in the markets.
Federal Reserve holds interest rates at 3.9 percent
The Sunday Guardian reported that this decision was a factor driving the market rally.
The benchmark 10-year US Treasury yield fell below the psychological 5 percent level. The 2-year yield dropped to 4.69 percent, while the 30-year yield was at 5.3 percent.
Falling US bond yields make debt markets less attractive relative to equities, which typically boosts equity markets.
Nifty FMCG leads sectoral gains
The Nifty FMCG index led sectoral gains with an increase of around 2 percent. Banking and IT stocks also supported the broader rally.
Nifty PSU Bank and Nifty IT indices rose up to 1 percent. The Nifty Auto index slipped into the red.
Expectations for LTCG tax relief persist
Finance Minister Nirmala Sitharaman indicated that discussions regarding these taxes are continuing.
Such a policy change would likely benefit large-cap stocks, including those in the banking and energy sectors.
There is growing anticipation for tax relief in the upcoming budget as the nation faces macroeconomic pressures. India has recorded $31 billion of capital flight in 2026, which has been affected by high crude prices, widening trade and current-account deficits, rupee depreciation, imported inflation, and a deficient monsoon.
Analysts weigh in on valuations and challenges
Kotak Institutional Equities said in a strategy report that valuations have become attractive and reasonable across stocks and sectors following a sharp sell-off. The firm is focusing less on top-down index valuations and more on identifying selective investment opportunities.
An analyst noted that chip shortage issues are expected to persist until 2030, keeping foreign capital focused on AI-related stocks in South Korea and Taiwan rather than India.
Rupee strengthens to 95.17 per US dollar
The currency opened the trading session at 95.20 per US dollar.
Foreign institutional investors purchased stocks worth ₹4,198 crore on Tuesday. Prior to the purchases made on Wednesday, these investors also bought ₹2,098 crore worth of shares on Friday.
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