Indian Shares Rebound as US Fed Holds Rates, Oil Retreats

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

October 29, 2026 at 12:47 PM IST

Benchmark equity indices rose on Thursday, rebounding from their recent decline, as the US Federal Reserve, expectedly, kept interest rates steady and on upbeat quarterly earnings from companies.

The Nifty50 rose 1.1% to 22,936.75, while the Sensex gained 1.2% to 74,151.04. Both had lost about 2% over the previous seven sessions, weighed by elevated crude oil prices.

On Wednesday, the US Fed kept interest rates unchanged citing still-elevated inflation and signalling a wait-and-see approach as it awaited further economic data. Brent crude futures fell 0.8% to $114.40 per barrel as traders assessed the outlook for peace talks and the risk of supply disruptions amid the West Asia conflict.

Fifteen of the 16 major sectoral indices rose. Financial stocks gained 1.2%, while information technology shares advanced 1%. FMCG and PSU bank stocks also supported the market, with their indices rising 1.6% and 1.3%, respectively. The auto index fell 0.4%. The Nifty Midcap 100 and Nifty Smallcap 100 each gained around 1%.

The Indian rupee recovered from a two-week low to end at 95.26 per US dollar, as against Wednesday’s close of 95.22, as likely intervention from the Reserve Bank of India and softer oil prices offset dollar demand, traders said.

Indian government bonds yields fell with the benchmark 6.94%, 2036 bond easing to 7.3902% from 7.4400% on Wednesday. The yield touched an intraday low of 7.3812% as lower crude prices and signs of potential de-escalation in West Asia supported sentiment, while traders covered short positions.

Top Movers of the Day

Adani Ports and Special Economic Zone rose 6.29% to close at ₹1,872.00. The stock gained momentum following strong earnings for the July-September quarter and as the company raised its guidance for the current financial year.

Adani Enterprises advanced 5.17% to close at ₹2,607.90. The flagship company attracted significant buying interest after it reported 74% year on year jump in consolidated revenue to ₹380.23 billion for the July-September quarter.

Kotak Mahindra Bank climbed 4.32% to close at ₹459. The private lender emerged as a standout performer in the financial space, driven by a 26% year-on-year jump in consolidated net profit for July-September.

Power Grid Corporation of India gained 3.42% to close at ₹260. The state-run utility saw steady institutional accumulation after the company announced its upcoming board meeting on November 1 and fixed a record date for its first interim dividend.

Hindustan Unilever added 2.34% to close at ₹1,858.20. The consumer goods giant provided strong support to the market, announcing strong July-September quarter earnings and interim dividend.

Trent declined 1.79% to close at ₹2,861.70. The retail major faced a steep fall as investors continued to book profits after its recent strong run. The localised unwinding of long positions kept the stock in negative territory all day.

Maruti SuzukiIndia fell 1.32% to close at ₹11,426. The automaker’s shares declined driven by a 26% year-on-year drop in July-September quarter net profit and faced selling pressure ahead of the festive weekend.

Bajaj Auto dropped 0.97% to close at ₹10,383. The two-wheeler manufacturer tracked the overall weakness seen in the broader auto index during the session. Despite the market's upward move, the stock succumbed to sector-specific profit-taking.

Eicher Motors decreased 0.85% to close at ₹7,238. The stock faced sustained downward momentum due to profit booking in a generally weak session for automobile manufacturers.

Tata Steel ended mostly flat to close at ₹169.46. The steel heavyweight encountered mild but persistent selling pressure, largely missing out on the broader market euphoria.

Futures & Options
The Nifty November 2026 futures contract closed at 23,053.00, a premium of 116.25 points to the Nifty 50's cash market close of 22,936.75. The benchmark index rose 237.90 points, or 1.05%, during the session. The NSE India VIX, which gauges the market's expectation of near-term volatility, declined 6.43% to 15.20.

Reliance Industries, HDFC Bank and Infosys were the most-traded individual stock futures contracts in the NSE's futures and options segment. November 2026 F&O contracts will expire on November 23.

Bonds
Indian government bond yields eased on Thursday as hopes of de-escalation in West Asia and softer crude oil prices prompted traders to cover short positions. The benchmark 6.94%, 2036 bond yield ended at 7.3902%, down from 7.4400% on Wednesday, after touching an intraday low of 7.3812%.

US media reports of efforts to revive peace negotiations and Iran's comments on a roadmap to reopen the Strait of Hormuz lifted sentiment, although US President Donald Trump denied that peace talks were underway. Brent crude fell below $114 a barrel, easing nearly $2 from the previous session and supporting domestic government bonds.

Forex
The Indian rupee recovered from a two-week low to end at 95.26 per US dollar on Thursday, as likely intervention by the Reserve Bank of India and softer oil prices offset dollar demand. The currency had closed at 95.22 on Wednesday.

The rupee weakened earlier in the session amid concentrated dollar demand around the RBI’s daily reference rate and increased interbank appetite for short rupee positions. Likely intervention by the central bank capped the losses, while fading dollar demand and lower oil prices helped the currency recover towards the close.

Crypto
The cryptocurrency market remained under pressure on Thursday, with Bitcoin trading around $80,100 and Ethereum near $2,314. Bitcoin traded in a range of $79,800-$80,200, down around 0.8%-1.5% over the previous 24 hours, as investors assessed the Federal Reserve’s decision to hold interest rates steady.

The FOMC voted 10-2 on Wednesday to maintain the federal funds target range at 3.75%-4.00%, citing strong economic activity and still-elevated inflation. The two dissenting policymakers favoured a rate hike, while the Fed’s emphasis on price stability reinforced concerns over the policy outlook, weighing on risk appetite across digital assets.

US Stock Futures
US stock futures were mixed early Thursday as investors assessed the latest earnings from major technology companies. Nasdaq-100 futures fell 1.06%, while Dow Jones Industrial Average futures rose 0.19% and S&P 500 futures gained 0.28%.

Alphabet shares plunged 10.38% in premarket trading after the Google parent missed third-quarter expectations for adjusted earnings per share and revenue. The company reported negative free cash flow of $9.07 billion and maintained its full-year capital expenditure forecast at $195 billion-$205 billion. In contrast, Microsoft rose 3.73% after growth in its Azure cloud infrastructure business helped it beat expectations for revenue and earnings in the fiscal first quarter.

US Treasury Notes
US Treasury yields were mixed on Thursday, hovering near multi-month highs as investors assessed the Federal Reserve’s decision to hold its benchmark interest rate at 3.75%-4.00%. The 10-year Treasury yield traded around 5.00%, slightly below its previous close but still elevated amid selling pressure on longer-dated bonds.

The two-year Treasury yield eased to around 4.693%, reflecting modest demand for shorter-dated securities. Longer-term maturities remained under pressure amid concerns over fiscal borrowing and structural uncertainty, contributing to a steeper yield curve.

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Indian Shares Rebound as US Fed Holds Rates, Oil Retreats