India’s Sensex Rises More Than 500 Points After Fed Holds Interest Rates

Key Facts

The Sensex rose 245.43 points, or 0.34%, to 73,491.46 points in morning trading on Thursday, October 29, while the Nifty gained 62.55 points, or 0.28%, to 22,761.40 points, according to Press Trust of India. The move followed the U.S. Federal Reserve’s decision the previous day to hold its interest rate within a range of 3.75% to 4%. Closing data showed the Sensex ended Thursday at 73,334.17 points, compared with 73,246.03 points on October 28. The Nifty also closed at 22,759.45 points, compared with 22,698.85 points the previous day.

The Fed kept its target range for the federal funds rate at 3.75% to 4% in a decision issued on October 28, with the committee voting 10 to 2 in favor. Lisa Cook and Beth Hammack dissented, preferring to raise the range by a quarter of a percentage point. The committee’s statement described economic activity as expanding at a solid pace and said domestic spending had remained resilient. It added that inflation remained elevated and uncertainty remained high, partly because of geopolitical developments. The Fed said, "Economic activity has been expanding at a solid pace," in language that paired resilient activity with continued price pressures.

Adani Ports was the biggest gainer among Sensex constituents in morning trading, rising 3%, according to Press Trust of India data. The advance followed the company’s announcement that its consolidated net profit rose 18% in the quarter ended in September, to 3,682.44 crore rupees. The report said Reliance Industries was also among the stocks in positive territory, without specifying a percentage gain. Foreign institutional investors bought shares worth 871.83 crore rupees on Wednesday. On the same day, domestic institutional investors recorded net purchases worth 643.35 crore rupees.

V K Vijayakumar of Geojit Investments said the expected rate hold was a mildly positive factor for global equities. He added that headwinds for the Indian market remained strong. Vijayakumar linked one of the risks to crude oil prices remaining high for an extended period. He said persistently high oil prices could widen the trade and current account deficits, weaken the rupee and increase imported inflation. He said, "From India’s perspective, the headwinds remain strong," referring to pressures limiting the impact of the Fed’s decision on the domestic market.

In the United States, the S&P 500 rose 0.3% on Wednesday, the Dow Jones gained 0.2% and the Nasdaq rose 0.3% after the Fed’s decision, according to the Associated Press. Indian markets also saw Jio Platforms shares begin trading on October 28; they rose about 27% on their first day after an initial public offering that raised $3.2 billion, according to Reuters via Investing.com. The Federal Open Market Committee’s next meeting will be held on December 8 and 9, 2026. A press conference is scheduled to follow. The next meeting’s data will be the next milestone for the Fed’s decision on the rate range.