Sensex Ends Nearly 888 Points Higher, Nifty Holds Above 24,250 as IT, Metal Stocks Lead Rally

Stock Market Today, July 29: The domestic equity markets ended Wednesday’s session with strong gains, supported by broad-based buying across sectors ahead of the US Federal Reserve’s policy announcement. Heavyweight IT, FMCG, metal and banking stocks led the rally, helping the benchmark indices post gains of over 1%.

The BSE Sensex settled 888.68 points, or 1.16%, higher at 77,654.60, while the Nifty 50 closed 264.85 points, or 1.10%, higher at 24,250.20.

Technology stocks remained the biggest contributors to the rally. The Nifty IT index ended 2.32% higher, while Nifty Metal gained 2.31% and Nifty FMCG advanced 1.66%. Healthcare, consumer durables and financial services indices also finished firmly in the green.

Among the Sensex constituents,

Hindustan Unilever emerged as the top gainer, surging 4.59%, followed by Infosys (+4.18%), Trent (+2.74%), Tata Steel (+2.55%), LT (+2.51%) and Bharti Airtel (+2.25%). Banking majors HDFC Bank, ICICI Bank and Kotak Mahindra Bank also ended with healthy gains.

On the losing side, Adani Ports was the biggest laggard, falling 3.10%. Mahindra & Mahindra, Power Grid, BEL, NTPC and Titan also closed lower.

Buying interest extended across the broader market, indicating improved investor sentiment beyond large-cap stocks. The Nifty Smallcap 100 climbed 1.48%, outperforming the benchmark indices, while the Nifty Midcap 100 rose 0.82%. The India VIX, which measures market volatility, declined 4.41% to 12.01, reflecting easing risk perception among investors.

Domestic equities gained on positive global cues and expectations that the US Federal Reserve would keep interest rates unchanged later in the day. Investors also remained optimistic ahead of key corporate earnings announcements.

Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth tech firm, said, “Indian equity markets ended higher ahead of the US Federal Reserve’s policy decision later today, with resilient domestic fundamentals outweighing weak global cues. Strong corporate earnings, sustained buying in information technology stocks, and a firmer rupee helped support investor sentiment, even as Asian markets extended their AI-driven technology sell-off and elevated Middle East tensions kept crude oil prices near recent highs.”

He added that the Nifty opened with a gap-up and maintained buying interest throughout the session, with investors using intraday declines to accumulate quality stocks. Information Technology remained the standout performer, extending its weekly gain to more than 7.5% as investors continued to rotate into the sector. Unlike Asian technology markets, which remained under pressure from concerns over semiconductor valuations and intensifying competition in the AI hardware space, Indian IT companies benefited from their services-led business models, resilient earnings outlook and attractive relative valuations.

“As valuations across the global semiconductor sector have become increasingly stretched, institutional investors have begun selectively increasing exposure to software and IT services companies are expected to benefit from the next phase of AI adoption, a shift that is also supporting India’s IT sector,” he said.

Asian equities extended their sharp sell-off, with South Korean markets plunging nearly 16% over the past two sessions and Taiwan falling close to 4%, reflecting continued pressure on semiconductor and AI-related stocks. Adding to the cautious mood, renewed Middle East tensions following fresh military strikes pushed oil prices higher after the recent period of de-escalation, while investors also awaited the US Federal Reserve’s policy decision, with interest rates widely expected to remain unchanged despite persistent inflation concerns.

Vinod Nair, head of research at Geojit Investments, said, “Given India’s diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades. Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook & reduction in operational costs.”

Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries. Attention now shifts to the US Fed’s policy decision due later tonight, with the widely expected pause in rates unlikely to materially impact Indian markets, as it is mostly already priced in, he added.