The US Federal Reserve left its benchmark interest rate unchanged at 3.75% to 4.00% on Wednesday, October 28, 2026, in a 10-2 vote. Indian equity indices rebounded on Thursday, October 29, with the Sensex up 608.18 points, or 0.83%, at 73,854.21 and the Nifty 50 up 166.15 points, or 0.73%, at 22,865.50 at about 12 pm.
The figures are intraday readings and will change before the close.
What the Federal Reserve Decided
The Fed concluded its two-day meeting on October 28 by holding the federal funds target range at 3.75% to 4.00%, where it has been since a quarter-point increase in September, the first rate rise since 2023.
| Detail | Outcome |
|---|---|
| Federal funds target range | 3.75% to 4.00%, unchanged |
| Vote | 10 in favour, 2 against |
| Dissenters | Governor Lisa Cook and Cleveland Fed President Beth Hammack, who wanted a quarter-point increase |
| Statement on inflation | Inflation “remains elevated” |
| Next meeting | December |
The statement said the committee wants an accumulation of more information before it decides on the policy stance needed to bring inflation back to 2% in a timely way. It did not give a clear signal on whether rates will rise in December. Reports said markets are pricing in the possibility of another increase before the end of the year, though that remains an expectation and not a decision.
At his press conference, Fed Chair Kevin Warsh said politics played no role in the decision ahead of the US midterm elections, according to reports. The two dissents were both in favour of tightening, which shows that some members see the inflation risk as larger than the majority does. US stocks ended higher on Wednesday after the decision, while Asian markets were mixed on Thursday.
How Indian Markets Reacted on October 29
Indian benchmarks had a mixed start. The Nifty opened near its previous close and was up 33.70 points at 22,732.55 at 9:29 am. Buying then picked up through the morning.
- At about 12 pm, the Sensex was up 608.18 points at 73,854.21 and the Nifty up 166.15 points at 22,865.50.
- Market breadth was positive, with 2,032 shares advancing, 1,467 declining and 185 unchanged.
- Live market reports showed gains widening further in the afternoon, with the Sensex up about 900 points and the Nifty above 22,950 at one stage.
- FMCG and PSU bank stocks led the gains among sectors, while the Nifty Auto index slipped about 0.4% in the morning.
Gains came after a weak session on Wednesday. The Sensex had fallen 352.64 points, or 0.48%, to close at 73,246.03, and the Nifty 50 had slipped 50.90 points, or 0.22%, to 22,698.85. The Nifty IT index fell 2%, while the Nifty Midcap and Nifty Smallcap indices rose 0.4% and 0.9%.
Why the Fed Matters for Indian Investors
US interest rates affect Indian markets mainly through capital flows and the exchange rate. Higher US rates make dollar assets more attractive and can draw money away from emerging markets, including India. Reports on Thursday noted that foreign outflows continued to weigh on sentiment even as the indices rose.
The rupee ended Wednesday 11 paise weaker at 95.23 against the US dollar, from 95.12 the previous day, as high oil prices and global policy uncertainty kept currency traders cautious.
Crude oil was another factor. Prices were near $115 a barrel on Wednesday, and oil cooled slightly on Thursday. India imports most of its oil, so high crude prices raise the import bill and can add to inflation.
Wednesday’s Range and Intraday Swings
Wednesday’s session was volatile. The Sensex touched an intraday low of 72,603.57 before recovering part of its losses, and the Nifty rebounded from a low of 22,497.70. Thursday’s recovery of about 650 points from the day’s low shows how large these swings have been this week.
Investors who hold positions in a demat and trading account can see how these swings affect their portfolio value during the day. Active traders often follow the moves on an online trading platform that offers live index data and charts, particularly on days with global events such as a central bank decision.
Key Events to Watch
Several items will influence the market in the coming sessions:
- Jio Platforms is scheduled to announce its September quarter results on October 30.
- The US Federal Reserve’s next meeting in December, and incoming US inflation data.
- US midterm elections next week, which reports cited as a factor for caution.
- Crude oil prices and developments in West Asia.
- Foreign investor flows in Indian equities.
Nothing in this report predicts where the market will go from here, and the intraday figures above may change by the close.
Key Numbers From the Last Two Sessions
The numbers that defined the last two sessions are shown below.
| Index | October 28 close | October 29 at about 12 pm |
|---|---|---|
| Sensex | 73,246.03 (-0.48%) | 73,854.21 (+0.83%) |
| Nifty 50 | 22,698.85 (-0.22%) | 22,865.50 (+0.73%) |
Closing figures for October 29 will be available after the market closes.
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