Markets snapped a losing streak as investors cheered a steady Fed and strong company earnings on expiry day.
Indian stock markets roared back to life on Thursday, October 29, 2026, as the Sensex jumped 905.01 points, or 1.24%, to close at 74,151.04, while the Nifty 50 gained 237.90 points, or 1.05%, to settle at 22,936.75. The rally came on monthly derivatives-expiry day, right after the US Federal Reserve chose to hold interest rates steady.
Stock Market Monday Predictions: Why Oil And FII Exit Could Sink Nifty Again
Sensex Jumps 900 Points As Selling Streak Finally Breaks
For nearly two weeks, Indian investors had little to cheer about. The Sensex and Nifty had fallen in six of the previous eight sessions, dragged down by high crude oil prices, a weak rupee and worries about inflation. Thursday changed all that. The Sensex jumped 900 points and the Nifty gained 1 per cent, pulling both benchmarks out of their recent slump in one powerful session.
What made the move stand out was how widespread it was. This wasn't just one or two big stocks pulling the index up. Buying showed up across realty, FMCG and banking stocks, signaling that investors across the board felt confident enough to step back into the market. Adani Ports led the gainers, rising about 6.3 per cent after the company posted stronger quarterly profit and raised its operating-profit guidance, pointing to improved cargo volumes. Adani Enterprises climbed around 5.2 per cent, and Kotak Mahindra Bank added nearly 4 per cent.
Indian Stock Market Monday Outlook: Can Sensex, Nifty Keep Rally Alive?
Federal Reserve Rate Pause Set The Tone For Global Markets
The single biggest trigger behind Thursday's rally was a decision made thousands of miles away in Washington. The US Federal Reserve kept its benchmark interest rate unchanged at 3.75 to 4 per cent, matching what markets had already expected. That might sound like a small detail, but it mattered a lot. When the Fed holds rates steady instead of raising them, it takes pressure off emerging markets like India, where higher US rates often pull money away toward safer US assets.
With that uncertainty removed, at least for now, investors felt free to shift their attention back to company earnings and local opportunities. Foreign portfolio investor buying also returned to support the market, according to daily market tracking reports. The combination of a predictable Fed and fresh buying interest from overseas funds gave Indian equities the room to bounce back sharply.
Earnings Season And Cooling Oil Prices Added Fuel To The Rally
Corporate earnings played a major supporting role in the rebound. Adani Ports didn't just beat expectations, it also raised its outlook for the rest of the year, citing stronger cargo volumes. That kind of forward-looking confidence from a major company tends to spread positive sentiment across related sectors like logistics, infrastructure and banking.
Oil prices also offered a bit of relief. Brent crude slipped roughly 0.8 per cent to around 114.40 dollars a barrel, continuing to ease slightly from its recent highs near 114 to 115 dollars. For a country like India that imports most of its oil, even a small drop in crude prices matters. It eases pressure on the trade deficit, keeps a lid on inflation, and takes some stress off the rupee. Reports also pointed to hopes of renewed diplomatic talks between the United States and Iran as a factor nudging oil prices lower on the day.
The rupee's modest strength on Thursday tied directly into this story. A firmer currency reduces the cost of imported goods and eases worries about companies that borrow in dollars. Combined with the Fed's pause and cooling oil prices, the stronger rupee rounded out a trio of favorable global cues that gave Indian markets the confidence to rally hard in a single session.
Expiry Day Trading Added Extra Momentum To The Move
Thursday also happened to be monthly derivatives expiry day, a session when traders often adjust or roll over their positions in futures and options contracts. This kind of activity can amplify price swings, whether up or down, simply because of the sheer volume of trades being settled or shifted. Combined with genuinely positive news from the Fed and corporate earnings, expiry-day dynamics likely added extra force to the rally rather than causing it outright.
Still, market watchers were careful not to call this the start of a guaranteed turnaround. Brent crude, even after its dip, remains historically high, and that keeps inflation and currency risks alive for India in the months ahead. Geopolitical tensions tied to oil-producing regions haven't disappeared either, they've simply taken a back seat for one trading session.
What Investors Will Watch Next After This Sharp Rebound
Going forward, traders are likely to keep a close eye on more quarterly earnings reports, since Thursday's rally showed just how much individual results can move stock prices. Adani Ports and Adani Enterprises proved that solid numbers and upgraded guidance can spark double-digit percentage jumps in a single day.
Currency movements and crude oil prices will also remain under watch, given how closely they're tied to India's inflation outlook and import costs. The Fed's future policy signals matter too, since any hint of a rate hike down the road could quickly reverse the positive mood seen on Thursday. For now, the Nifty's return above the 22,900 mark and the Sensex's strong 905-point jump offer a much-needed breather after a rough stretch, but one good session rarely tells the whole story on its own.
