Indian stock markets are gearing up for a positive start on October 29, 2025, fueled by strong global cues and investor optimism. With the Gift Nifty trading higher and Asian indices showing gains, traders are closely watching the Federal Reserve’s rate decision and upcoming big tech earnings for further direction.
Global Cues Drive Market Sentiment
Markets across Asia opened on a firm note today, reflecting overnight gains in the US. Japan’s Nikkei 225 climbed more than 1 percent to a new record high, while South Korea’s Kospi edged up 0.17 percent.
This upbeat mood stems from Wall Street’s performance, where major indices hit fresh highs. The Dow Jones rose 0.7 percent, the S&P 500 gained 1.2 percent, and the Nasdaq advanced 1.8 percent. Investors attribute this rally to positive economic signals and anticipation around policy moves.
Traders in India see these developments as a green light for buying. The broader sentiment ties into hopes for stable global growth, which could benefit export-oriented sectors here.
Hong Kong markets remained closed for a holiday, but the overall Asian trend points to resilience amid global uncertainties.
Focus on Fed Rate Decision and Tech Earnings
All eyes are on the US Federal Reserve’s two-day policy meeting, which began yesterday. Experts widely expect a 25 basis point rate cut, following recent weak US jobs data. Such a move could ease borrowing costs worldwide and boost liquidity for emerging markets like India.
Big tech earnings are also in the spotlight this week. Reports from companies like Alphabet, Microsoft, and Meta could influence global investor confidence. Strong results might signal robust consumer spending and innovation, spilling over to Indian IT firms.
In recent sessions, similar events have swayed markets. For instance, positive earnings from US banks earlier this month lifted banking stocks in India. Analysts note that a dovish Fed stance often leads to capital inflows into Asia.
This combination of events creates a watchful environment. Investors are positioning themselves for potential volatility, but the consensus leans toward optimism if outcomes align with expectations.
Market participants recall how the Fed’s last rate adjustment in September sparked a brief rally in Indian indices. Today, similar patterns could emerge.
Recap of Yesterday’s Trading Session
On October 28, Indian markets faced volatility but ended with minor losses. The Sensex dropped 150.68 points, or 0.18 percent, to close at 84,628.16. The Nifty fell 29.85 points, or 0.11 percent, settling at 25,936.20.
Sector performance varied widely. Realty, IT, and FMCG stocks led the declines, pulling the indices lower. However, metals and banking sectors showed strength, limiting the downside.
Broader markets stayed mostly flat, with selective buying in midcap and smallcap segments. Trading volumes remained moderate, indicating cautious participation.
This session followed a six-day winning streak for the Sensex, highlighting a shift from recent upward momentum. Analysts point to profit-taking as a key factor.
Analyst Insights and Technical Outlook
Experts predict the Nifty could test resistance at 26,050 to 26,100 soon. A break above 26,100 might push it toward 26,300, signaling stronger bullish trends.
On the support side, the 25,750 to 25,700 range is crucial. Holding this level could prevent deeper corrections.
Here are some key technical indicators to watch:
- RSI (Relative Strength Index): Currently at 55, suggesting room for upward movement without overbought conditions.
- Moving Averages: The 50-day average near 25,800 acts as immediate support.
- Volatility Index: India VIX dipped slightly, pointing to reduced fear among traders.
One analyst noted that foreign institutional investors have cut shorts from 92 percent to 74 percent in the October series, a positive sign. Domestic inflows continue to provide a buffer.
Long-term views remain constructive, with India’s economic growth projected at 7 percent for the fiscal year. This resilience amid global headwinds supports a buy-on-dip strategy.
Top Stocks and Sectors in Focus
Banking and metal stocks cushioned yesterday’s fall and may lead today’s gains. Names like Tata Steel, State Bank of India, and Larsen & Toubro showed relative strength.
IT counters could rebound if US tech earnings impress, given India’s heavy reliance on outsourcing. FMCG might lag if consumer sentiment stays muted.
For a quick overview, here’s a table of recommended stocks from recent analyst calls:
| Stock Name | Sector | Target Price | Potential Upside |
|---|---|---|---|
| Tata Steel | Metals | 180 | 10% |
| Jai Corp | Diversified | 400 | 15% |
| Vadilal Industries | FMCG | 4,500 | 8% |
| IndusInd Bank | Banking | 1,600 | 12% |
| Sun Pharma | Pharma | 1,900 | 9% |
These picks come from a mix of technical and fundamental analysis. Investors should monitor volume spikes for entry points.
Broader themes include festive demand boosting retail and auto sectors. Recent government capex in infrastructure could further aid construction-related stocks.
Future Outlook and Investor Strategies
Looking ahead, the Nifty has risen 1,355 points in the October series, building on Diwali rally momentum. Sustained foreign inflows and strong corporate earnings could extend this trend.
However, risks like geopolitical tensions or unexpected Fed signals loom. Diversification across sectors remains key for risk management.
Traders advise focusing on quality stocks with solid balance sheets. For retail investors, systematic investment plans offer a steady approach amid volatility.
As markets evolve, staying informed on global events will be crucial. Share your thoughts on today’s opening in the comments below, and don’t forget to spread the word if this analysis helps your trading decisions.
