Sensex, Nifty trade firm as Fed decision lifts sentiment; FMCG stocks lead gains

The key equity indices were trading firm in afternoon trade. Sentiment improved after the US Federal Reserve kept interest rates unchanged. Buying by foreign portfolio investors (FPIs), who purchased shares worth Rs 872 crore on Wednesday, supported the recovery. However, elevated crude oil prices and US Treasury yields near 5% remained key concerns. The Nifty traded above 22,800 mark.

At 13:30 IST, the S&P BSE Sensex advanced 584.39 points or 0.80% to 73,830.42. The Nifty 50 index rose 148.80 points or 0.66% to 22,847.65.

In the broader market, the Nifty MidCap 150 Index rose 0.25% and the BSE 250 SmallCap Index added 0.19%.

The market breadth was positive. On the NSE, 1867 shares rose and 1581 shares fell. A total of 116 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 4.69% to 15.48.

Buzzing Segment:

The Nifty FMCG index rose 1.60% to 43,563.40, recovering from the previous session's 0.56% decline.

Among the index constituents, United Spirits (up 3.45%), Varun Beverages (up 2.25%), Radico Khaitan (up 2.10%), Britannia Industries (up 2.08%) and Marico (up 2.05%) were the top gainers. Other notable advancers included ITC (up 1.77%), Dabur India (up 1.67%), Godfrey Phillips India (up 1.55%), Hindustan Unilever (up 1.43%) and Tata Consumer Products (up 1.35%).

On the other hand, United Breweries declined 1.04%, emerging as the sole laggard among the listed constituents.

United Spirits rose 3.65%. On a consolidated basis, the company's net profit declined 7.76% to Rs 428 crore, while net sales rose 2.87% to Rs 3264 crore in Q2 September 2026 over Q2 September 2025.

Stocks In Spotlight:

Pidilite Industries rose 1.30%. The company's standalone net profit rose 10.4% to Rs 647 crore on a 21.7% increase in net sales to Rs 3,982 crore in Q2 FY27 over Q2 FY26. Revenue growth during the quarter was aided by underlying volume growth (UVG) of 10.7%. EBITDA stood at Rs 811 crore in Q2 FY27, registering a growth of 0.5% compared with Rs 807 crore in Q2 FY26. EBITDA margin declined to 20.4% from 24.7% in the corresponding quarter of the previous year.

Global Market:

Dow futures surged 195 points, signalling a strong opening for US stocks.

European shares traded higher at the opening on Thursday, 29 October 2026. Investors are assessing corporate earnings and the US Federal Reserve's decision to hold interest rates steady, while awaiting the European Central Bank's policy announcement.

Asian indices were mixed on Thursday, as gains in artificial intelligence-linked shares offset concerns following Alphabet's weaker-than-expected earnings.

Investors assessed the latest technology earnings alongside the Federal Reserve's decision to keep interest rates unchanged. Semiconductor stocks drew support from gains in US chipmakers, while concerns about the cost of AI infrastructure and the returns on investment remained in focus. Alphabet's post-market earnings miss added uncertainty ahead of further results from major technology companies.

US stocks ended higher on Wednesday, after the Federal Reserve kept its benchmark interest rate unchanged. The Dow Jones Industrial Average rose 97.53 points, or 0.19%, to 52,475.10. The S&P 500 gained 21.37 points, or 0.28%, to 7,743.97, while the Nasdaq Composite advanced 72.04 points, or 0.27%, to 26,549.85.

The Fed maintained its target range at 3.75%-4.00% in a 10-2 vote. It upgraded its assessment of economic activity but said inflation remained elevated. Governors Lisa Cook and Beth Hammack dissented, preferring a 25-basis-point rate increase. Markets subsequently raised the implied probability of a December rate hike to 85%, from 78.3% a day earlier, according to CME FedWatch data.

Microsoft shares gained more than 4% in extended trading after the company reported stronger-than-expected cloud revenue. Azure growth accelerated to 48% in its fiscal first quarter, beating its previous guidance and supporting optimism about demand for cloud computing and AI services. Investors will continue to assess Microsoft's capital expenditure and data-centre investment plans.

Alphabet shares fell more than 7% in after-hours trading after its third-quarter results missed analysts' expectations. Revenue rose 25% year on year to $127.58 billion, below the $127.97 billion forecast. Net income fell to $26.17 billion from $34.98 billion a year earlier, while earnings per share came in at $2.12, below estimates of about $3.01. An $8.7 billion loss on equity investments weighed on reported earnings.

Google Cloud remained a bright spot, with revenue surging 103% to $30.7 billion, driven by demand for AI infrastructure and enterprise services. However, investors remained concerned about the scale of capital expenditure and the returns from AI investment.

Investors are awaiting US third-quarter GDP, September personal income and spending figures, and the Personaonsumption Expenditures price index on Thursday. The PCE index is the Federal Reserve's preferred inflation gauge. Initial jobless claims are also due.

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