Nifty Edges Up as Bulls Defend 22,600 Following US Federal Reserve Rate Hold

Indian equity benchmarks opened cautiously on Thursday, October 29, 2026, with the Nifty 50 trading at 22,730.10, up 31.25 points or 0.14 per cent. The index had closed the previous session at 22,698.85. Meanwhile, the Sensex opened at 73,268.47 and traded at 73,388.81, gaining 142.78 points or 0.19 per cent at 9.19 am. Early buyers stepped in to absorb overnight global cues following the US Federal Reserve's decision to hold interest rates steady.

Gift Nifty had earlier signaled a weak start, trading down 69 points at 22,664 ahead of the opening bell. However, actual market open proved steadier, supported by institutional buying from both foreign and domestic funds. Foreign institutional investors had net bought equities worth ₹871 crore in the previous session, while domestic institutional investors added ₹643 crore.

Among individual stocks, Adani Ports topped the Nifty 50 gainers list, rising 2.36 per cent to ₹1,802.90. TCS advanced 1.56 per cent to ₹2,498.40, BSE gained 1.21 per cent to ₹3,527, and Power Grid rose 1.13 per cent to ₹254.25. On the losing side, Trent fell the most among Nifty 50 stocks, declining 1.46 per cent to ₹2,871.40. Maruti Suzuki slipped 0.94 per cent to ₹11,470, while HDFC Bank shed 0.93 per cent to ₹678.90 on heavy volumes.

The US Federal Reserve kept its benchmark rate unchanged at 3.75 per cent to 4.00 per cent at its latest meeting, though two policymakers voted for a rate hike. The US 10-year Treasury yield continued to hover near 5.02 per cent. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the Fed's hold was mildly positive for global equity markets, but cautioned that headwinds for India remain strong. Ankita Pathak, Head of Global Investments at Ionic Asset, described the Fed's stance as a calibrated, data-dependent approach and added that a December 2026 hike seems likely.

Macroeconomic pressures persisted as Brent crude held near $114 to $115 a barrel and WTI traded around $102. These elevated energy costs continue to put pressure on oil-sensitive sectors such as FMCG, chemicals, and aviation. Vijayakumar warned that prolonged high crude prices would widen trade and current account deficits, leading to rupee depreciation and imported inflation.

Foreign capital outflows also remained a concern, with Vijayakumar pointing out that capital flight totaling $31 billion so far in 2026 is impacting domestic macroeconomic indicators. Additionally, global capital continues to chase AI-related stocks, particularly in South Korea and Taiwan, amid extended semiconductor shortages.

Technically, the Nifty remains below key moving averages, with immediate resistance seen at 22,830 to 22,900 and support at 22,500 to 22,600. Bank Nifty, which closed its previous session at 54,267.40, faces resistance at 54,600 to 54,800 and support at 53,800 to 54,000. Meanwhile, global monetary tightening continues, with the Bank of Canada hiking rates by 25 basis points to 2.50 per cent and New Zealand's central bank maintaining a hawkish outlook.

"While the US Federal Reserve's decision to hold interest rates steady provides temporary relief to global equity markets, Indian businesses and investors must remain cautious of domestic macroeconomic headwinds. Elevated crude oil prices, ongoing foreign capital outflows, and currency depreciation pressures require companies to maintain disciplined financial management. For entrepreneurs and market participants alike, navigating this period of global monetary tightening calls for a strong focus on core operational resilience and capital efficiency." — Dr. Shishir Gupta, Founder & CEO, StartupLanes