Indian Markets Edge Higher After Fed Decision

Indian equity benchmarks moved higher in early trading on October 29, 2026, supported by gains in Reliance Industries and information technology stocks after the US Federal Reserve kept interest rates unchanged, as expected.

The Nifty 50 rose 0.54% to 22,821.85, while the BSE Sensex gained 0.61% to 73,693.22 as of 10:24 a.m. IST, according to Reuters.

Fifteen of the 16 major sectoral indexes advanced during the session, indicating broad participation in the early market recovery. However, elevated crude oil prices and high US Treasury yields continued to limit investor optimism.

Reliance and Jio Platforms Support Market Gains

Reliance Industries gained 1.7%, helping support the benchmark indexes. Its telecom and digital subsidiary, Jio Platforms, rose 3.5%, extending the gains following its stock market debut.

Investors continued to assess Jio Platforms' market performance and its position within Reliance Industries' wider business portfolio.

The movement in Reliance was particularly significant because of the company's substantial weight in India's major equity benchmarks. Gains in heavily weighted stocks can significantly influence overall index performance.

IT Stocks Recover as Fed Holds Interest Rates

Indian information technology stocks also advanced, with the Nifty IT index rising 0.5% in early trading.

The Federal Reserve's decision to keep interest rates unchanged provided some support for global equity sentiment. Higher US interest rates can make government bonds and dollar-denominated assets more attractive relative to emerging-market equities.

However, the Fed indicated that inflation remained elevated and that it would wait for additional economic data before considering changes to borrowing costs.

For Indian IT companies, which generate a significant share of their revenue from overseas markets, global economic conditions and client technology spending remain important factors influencing investor expectations.

Elevated Crude Oil Prices Remain a Concern

Despite the early gains, oil prices continued to pose a challenge for Indian markets. Brent crude fell around 1% to approximately $114 per barrel, but prices remained high amid concerns about potential supply disruptions linked to tensions in the Middle East.

India imports a substantial share of its crude oil requirements, making the economy sensitive to sustained increases in energy costs.

Higher oil prices can raise inflationary pressure, increase import expenditure and put pressure on the rupee. They can also affect corporate margins and influence expectations for domestic interest rates.

Market participants therefore continued to monitor developments in energy markets alongside global monetary policy.

Foreign Investment and Market Outlook

Foreign portfolio investors purchased Indian shares worth ₹8.72 billion on October 28, marking a second consecutive session of buying, according to provisional data cited by Reuters. Despite these inflows, foreign investors had sold approximately $3.74 billion worth of Indian equities during October up to that point.

The mixed investment trend reflects continued uncertainty about global interest rates, energy prices and the outlook for emerging markets.

While the Fed's decision offered some support, analysts cautioned that high oil prices and elevated US bond yields remained significant headwinds for Indian equities.

What Investors Will Watch Next

Investors are likely to focus on corporate earnings, foreign fund flows, crude oil prices and further signals from the Federal Reserve.

The gains in Reliance Industries and IT stocks helped lift the market during early trading, but a sustained recovery will depend on whether broader economic and global market conditions improve.

For now, Indian equities are balancing positive stock-specific developments and a supportive response to the Fed's decision against continued concerns over inflation and energy costs.