Indian Shares Hold Steady Following US Fed’s Rate Decision Amid Oil Concerns
Indian stock indices remained stable after the US Federal Reserve kept interest rates unchanged, although rising oil prices cast doubts on market performance.
MUMBAI, Oct 29: Indian stock indices held steady on Thursday after the U.S. Federal Reserve decided to maintain its key interest rates unchanged. The decision came despite persistent inflation concerns.
The BSE Sensex increased by 245.43 points, or 0.34%, reaching 73,491.46, while the NSE Nifty rose 62.55 points, or 0.28%, to 22,761.40. The buying momentum was largely attributed to Reliance Industries and a strong influx of foreign institutional investments.
According to exchange data, foreign institutional investors purchased equities worth ₹871.83 crore, with domestic institutional investors also active buyers, acquiring shares worth ₹643.35 crore. “Buying by both foreign and domestic institutional investors provided broad-based institutional support to the market,” said Sachin Gupta, VP of Technical Research at Choice Broking.
Adani Ports was among the top performers, with a 3% rise following the announcement of an 18% increase in its consolidated net profit for the September quarter. Other companies such as Power Grid, Kotak Mahindra Bank, and Infosys also saw positive movement.
In contrast, the shares of Trent and Maruti Suzuki were lagging. Jio Platforms Ltd continued its momentum from a strong market debut, gaining over 5% on Thursday.
While the Fed’s decision was viewed as mildly positive for global equity markets, concerns persist regarding the impact of high oil prices. Brent crude oil fell by 1.03% to $114.13 per barrel, but analysts noted that elevated fuel prices could worsen trade deficits and inflation in India.
V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments, pointed out that while the Fed’s stance is positive, the Indian market faces challenges. He emphasized the potential for the rupee to depreciate further due to ongoing crude price concerns and warned about imported inflation exacerbated by poor monsoon conditions this year.
Asian markets showed mixed results, with South Korea’s Kospi down 3%, and Shanghai’s SSE Composite Index dipping 1%, while Hong Kong’s Hang Seng index remained stable. U.S. markets ended higher the previous day, which could provide some support for Indian equities moving forward.
Sources
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.