Sensex surges 905 points, Nifty tops 22,900 on FMCG and PSU bank rally
Synopsis
After two straight sessions in the red, Indian equities staged a decisive comeback on 29 October, with the Sensex surging over 900 points as FMCG and PSU bank stocks drove broad-based buying. Nifty's reclaim of the 20-DMA and a consolidation breakout have put the index's previous swing high of 23,175 squarely in the frame.
Key Takeaways
Sensex surged 905.01 points ( 1.24% ) to close at 74,151 on 29 October , snapping a two-day losing streak.
Nifty50 settled at 22,936.75 , up 237.90 points or 1.05% .
Nifty Realty (+ 2.75% ) and Nifty FMCG (+ 2.34% ) topped the sectoral leaderboard; Nifty PSU Bank rose 2.20% .
Nifty Auto was the sole notable laggard, slipping 0.24% .
Analysts flag 23,000 as immediate resistance and 23,175 as the next upside target, with 22,800 as crucial support.
The rupee traded at 95.25 , range-bound after the US Fed held rates steady at 3.75%–4% .
The BSE Sensex surged 905.01 points, or 1.24%, to close at 74,151 on Thursday, 29 October, snapping a two-day losing streak as strong buying in FMCG and public sector banking stocks powered a broad-based rally. The Nifty50 climbed 237.90 points, or 1.05%, to settle at 22,936.75, with broader markets also ending firmly in the green.
Sectors That Led the Charge
The Nifty Realty index topped the sectoral leaderboard, rising 2.75%, closely followed by the Nifty FMCG index, which advanced 2.34%. Defensive and banking names dominated the session's breadth. The Nifty PSU Bank index also attracted significant institutional interest, climbing 2.20%.
Auto stocks were the notable laggard. The Nifty Auto index slipped 0.24%, making it one of the few sectoral indices to close in negative territory on an otherwise buoyant day for Indian equities.
Broader Market Strength
Market breadth remained firmly positive throughout the session. The Nifty Midcap 100 and Nifty Smallcap 100 indices each rose nearly 1%, suggesting that the rally was not confined to large-cap heavyweights but extended across the market-cap spectrum — a constructive signal for risk appetite.
Nifty Technical Outlook: 23,175 in Sight
Analysts noted that the Nifty has strongly reclaimed its 20-day moving average (20-DMA), accompanied by a consolidation breakout on the daily chart, indicating an improving price structure. According to market watchers, 'Although 23,000 remains an immediate hurdle, the current setup suggests a high probability of the index moving towards its previous swing high of 23,175.'
Analysts added that 'as long as Nifty sustains above its 20-DMA and the crucial support zone of 22,800, the short-term outlook remains positive, with resistance at 23,175.' This comes amid a broader pattern of the index struggling to hold above its short-term moving averages — a challenge it appears to have addressed in Thursday's session.
Rupee and Fed Rate Decision
The Indian rupee traded in a narrow range, gaining a marginal 0.04% to settle at 95.25 against the US dollar. The muted currency move followed the US Federal Reserve's decision to keep interest rates unchanged at 3.75%–4%. According to analysts, the rupee is expected to remain range-bound in the near term, with a trading band of 94.75–95.75 on the cards.
With the Fed holding steady and domestic buying supporting equities, market participants will now watch for the next major trigger — whether from global macro data or domestic earnings — to determine whether Nifty can convincingly breach the 23,000 mark.
Point of View
And FMCG leading the charge signals a rotation into defensives rather than pure risk-on froth. However, the 23,000 ceiling has been tested and rejected multiple times in recent weeks, making the breakout case unproven. Auto's underperformance warrants attention: it is typically a leading demand indicator, and a sector-wide slip on a strong tape suggests that consumption anxiety has not fully cleared. The rupee's marginal response to the Fed hold also hints at underlying dollar strength that could cap FII inflows — the real fuel for any sustained Nifty move toward 23,175.
NationPress
29 Oct 2026
Frequently Asked Questions
Why did the Sensex and Nifty rally on 29 October 2026?
The Sensex surged 905 points and the Nifty rose 237 points on 29 October, driven by strong buying in FMCG and PSU banking stocks. Broad market participation, with Midcap and Smallcap indices also gaining nearly 1% each, amplified the session's positive tone.
What is the Nifty's next target level after Thursday's rally?
According to market analysts, the Nifty's reclaim of the 20-day moving average and a consolidation breakout on the daily chart point to the previous swing high of 23,175 as the next key upside target. The immediate hurdle is 23,000, while 22,800 is cited as critical support.
Which sectors outperformed and underperformed on Thursday?
Nifty Realty (+2.75%), Nifty FMCG (+2.34%), and Nifty PSU Bank (+2.20%) were the top performers. Nifty Auto was the standout laggard, slipping 0.24% — one of the few sectoral indices to close in negative territory.
How did the US Federal Reserve's rate decision affect Indian markets?
The US Federal Reserve kept interest rates unchanged at 3.75%–4%, providing a steady macro backdrop. The Indian rupee responded with a marginal 0.04% gain to trade at 95.25, with analysts expecting it to remain range-bound between 94.75 and 95.75 in the near term.
How did broader markets perform alongside the Sensex and Nifty?
Broader markets also participated in Thursday's rally, with both the Nifty Midcap 100 and Nifty Smallcap 100 rising nearly 1% each. Positive market breadth across segments indicated that buying interest was not limited to large-cap stocks.
