Why market is rising today: Sensex surges 800 pts, Nifty tops 24,200 despite spike in oil prices
Stock market today: The US Fed's rate decision will be announced tonight, with markets watching for any shift after June's hawkish dot plot pointed to a possible hike rather than a cut by year-end, analysts said.
- Jul 29, 2026,
- Updated Jul 29, 2026 10:34 AM IST
Benchmark indices Sensex and Nifty climbed 1 per cent each in Wednesday's trade, even as oil prices spiked 4 per cent and Asian peers fell up to 2.5 per cent earlier today. The indices gained amid buying in IT majors Infosys Ltd and Tata Consultancy Services Ltd (TCS) amid AI-reversal trade globally, and other index heavyweights such as Reliance Industries, HDFC Bank and Bharti Airtel Ltd. Strong Q1 results season so far, rupee appreciation and fair valuations also aided investor setiment.
The US Fed's rate decision will be announced tonight, with markets watching for any shift after June's hawkish dot plot pointed to a possible hike rather than a cut by year-end, analysts said.
Sensex surged 828 points to hit a high of 77,593.59. It was later trading at 77,541.56, up 775.64 points or 1.01 per cent. Nifty topped the 24,000 level and was up 221 points or 0.92 per cent at 24,211. Earlier, GIFT Nifty futures had hinted at gap-up opening for the indices.
Infosys Ltd led gainers at Sensex, rising 3.36 per cent to Rs 1,142.85. TCS, HCL Tech and Tech Mahindra gained up to 2.6 per cent, lifting the index.
Larsen & advanced 3.45 per cent to Rs 3,965.15 after declaring Q1 results and order win. Hindustan Unilever Ltd (HUL) gained 3.11 per cent to Rs 2,086. HDFC Bank rose 1.38 per cent to Rs 745.60. Reliance Industries Ltd also gained half a per cent.
"Technically, the market bias remains constructive as long as the Nifty sustains above the 23,880 support zone," said Rajesh Palviya, Head of Research at Axis Direct.
He noted that the 24,100–24,150 band coincided with the 20-day moving average and a sustained move above that may pave the way towards 24,400 level on Nifty. Investors will closely track the US Federal Reserve policy outcome and developments in crude oil prices, as both are likely to influence market direction in the near term, he said.
In the case of Fed meet, Nomura said the Fed Chair Warsh "has not convinced other Fed officials that AI will be predictably disinflationary. "His repeated emphasis on productivity and supply growth makes us skeptical that he will turn hawkish and support pre-emptive rate hikes though. As he consistently emphasizes productivity growth, suggesting this should be an important driver of policy decisions."
VK Vijayakumar, Chief Investment Strategist, Geojit Investments earlier today anticipated the range bound construct of the market is likely to be broken on the upside assisted by the fairly valued stocks in the Nifty.
"Big conviction buys by the FIIs need clarity on the trajectory of the crude price and progress of the monsoon. The sharp correction in chip stocks in South Korea is an advantage for India," he noted.
Vijayakumar, meanwhile said, a status quo on policy rate by the Fed has already been discounted by the market and any surprise hike will have slightly negative implications on sentiment.
Data showed Brent futures for October delivery rose 3.78 per cent to $85.18 a barrel after Houthi attacks on Saudi-linked tankers in the Bab al-Mandeb strait disrupted a key Red Sea shipping route, reviving fears of wider Gulf disruption.
"This reverses a three-day decline and rekindles inflation concerns just as the Fed weighs its rate decision," said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Benchmark indices Sensex and Nifty climbed 1 per cent each in Wednesday's trade, even as oil prices spiked 4 per cent and Asian peers fell up to 2.5 per cent earlier today. The indices gained amid buying in IT majors Infosys Ltd and Tata Consultancy Services Ltd (TCS) amid AI-reversal trade globally, and other index heavyweights such as Reliance Industries, HDFC Bank and Bharti Airtel Ltd. Strong Q1 results season so far, rupee appreciation and fair valuations also aided investor setiment.
The US Fed's rate decision will be announced tonight, with markets watching for any shift after June's hawkish dot plot pointed to a possible hike rather than a cut by year-end, analysts said.
Sensex surged 828 points to hit a high of 77,593.59. It was later trading at 77,541.56, up 775.64 points or 1.01 per cent. Nifty topped the 24,000 level and was up 221 points or 0.92 per cent at 24,211. Earlier, GIFT Nifty futures had hinted at gap-up opening for the indices.
Infosys Ltd led gainers at Sensex, rising 3.36 per cent to Rs 1,142.85. TCS, HCL Tech and Tech Mahindra gained up to 2.6 per cent, lifting the index.
Larsen & advanced 3.45 per cent to Rs 3,965.15 after declaring Q1 results and order win. Hindustan Unilever Ltd (HUL) gained 3.11 per cent to Rs 2,086. HDFC Bank rose 1.38 per cent to Rs 745.60. Reliance Industries Ltd also gained half a per cent.
"Technically, the market bias remains constructive as long as the Nifty sustains above the 23,880 support zone," said Rajesh Palviya, Head of Research at Axis Direct.
He noted that the 24,100–24,150 band coincided with the 20-day moving average and a sustained move above that may pave the way towards 24,400 level on Nifty. Investors will closely track the US Federal Reserve policy outcome and developments in crude oil prices, as both are likely to influence market direction in the near term, he said.
In the case of Fed meet, Nomura said the Fed Chair Warsh "has not convinced other Fed officials that AI will be predictably disinflationary. "His repeated emphasis on productivity and supply growth makes us skeptical that he will turn hawkish and support pre-emptive rate hikes though. As he consistently emphasizes productivity growth, suggesting this should be an important driver of policy decisions."
VK Vijayakumar, Chief Investment Strategist, Geojit Investments earlier today anticipated the range bound construct of the market is likely to be broken on the upside assisted by the fairly valued stocks in the Nifty.
"Big conviction buys by the FIIs need clarity on the trajectory of the crude price and progress of the monsoon. The sharp correction in chip stocks in South Korea is an advantage for India," he noted.
Vijayakumar, meanwhile said, a status quo on policy rate by the Fed has already been discounted by the market and any surprise hike will have slightly negative implications on sentiment.
Data showed Brent futures for October delivery rose 3.78 per cent to $85.18 a barrel after Houthi attacks on Saudi-linked tankers in the Bab al-Mandeb strait disrupted a key Red Sea shipping route, reviving fears of wider Gulf disruption.
"This reverses a three-day decline and rekindles inflation concerns just as the Fed weighs its rate decision," said Devarsh Vakil, Head of Prime Research at HDFC Securities.