Sensex Gained 1.24% to 74,151 and Nifty Rose 1.05% on Wednesday; GIFT Nifty Signals Cautious Friday Open as Brent Tops $117

The Quick Take

• Indian markets closed higher on October 29 with Sensex rising 1.24% to 74,151.04 and Nifty 50 gaining 1.05% to 22,936.75.
• Bank Nifty advanced 1.18% to 54,909.65 with FMCG and Realty stocks leading sectoral gains on Wednesday's strong session.
• GIFT Nifty is trading around 23,014–23,038 on Friday, pointing to a cautious opening amid mixed global cues.
• Brent crude surging above $117 per barrel is the dominant headwind weighing on sentiment and India's inflation outlook heading into the weekend.
• US markets fell overnight with technology stocks under pressure, adding to weak external cues for Friday's session.

Indian equity markets delivered a solid session on October 29, with the Sensex and Nifty 50 posting gains of over 1% each, driven by broad-based buying across banking, FMCG, and real estate sectors. Bank Nifty's advance of 1.18% was particularly encouraging, as financial stocks had been lagging broader indices in recent weeks amid concerns about net interest margin compression. The positive session reinforced the narrative that domestic institutional investors continue to use dips as buying opportunities, providing a floor to the market even as foreign institutional investors remain net sellers on most days.

Friday's session is set to open on a more cautious note, with GIFT Nifty futures pointing to the index opening below 23,050. The primary catalyst for the weaker opening is the overnight surge in Brent crude oil above $117 per barrel, which raises concerns about India's inflation trajectory, current account deficit, and the rupee's stability. Oil at this level also squeezes corporate margins across sectors including airlines, paints, chemicals, and transportation, potentially weighing on earnings estimates for Q3 FY27. Investors will watch whether domestic institutional buying is sufficient to absorb selling pressure from global risk-off sentiment.

The longer-term picture for Indian equities remains constructive, underpinned by recovery in corporate earnings, strong GST collection data, and healthy rural demand indicators ahead of the winter crop season. However, the near-term risk-reward has become less favourable given crude oil at $117, elevated global bond yields, and technology sector weakness in the US that could dampen sentiment in India's IT-heavy indices. Market participants should watch the $115–$118 range in Brent crude as the critical threshold — a sustained rally above $120 would likely trigger a more meaningful correction in Indian equities over the subsequent sessions.

Synthesized from 2 sources.