Indian Shares Rally as Global Sentiment Improves
MUMBAI (October 29, 2025) — Indian equity markets gained ground on Wednesday, supported by rising optimism over a U.S. Federal Reserve rate cut and encouraging signals of a potential U.S.-China trade truce.
Both benchmark indices — the Nifty 50 and BSE Sensex — advanced for a second consecutive session, with investors positioning for positive global cues and stronger foreign portfolio inflows.
The Nifty 50 index rose 0.45% to 26,053.9, while the Sensex gained 0.44% to close at 84,997.13, hovering just below their record highs from September 2024.
Fifteen out of sixteen major sectoral indices ended in the green, highlighting broad-based buying interest across key segments of the market.
Fed Rate Cut Expectations Drive Foreign Inflows
Investor sentiment was buoyed by expectations that the Federal Reserve will announce a 25-basis-point interest rate cut later in the day — a move widely anticipated by global markets.
According to the CME FedWatch Tool, traders priced in a 99.9% probability of a rate cut, which could spur foreign investments in emerging markets like India.
Foreign Institutional Investors (FIIs) purchased Indian equities worth ₹103.4 billion ($1.18 billion) on Tuesday — their largest single-day inflow in four months — signaling renewed global confidence in Indian growth prospects.
“Optimism over the U.S.-China trade talks further lifted confidence after both sides signaled progress toward a potential deal,” said Gaurav Garg, analyst at Lemonn Markets Desk.
US-China Trade Truce Lifts Metals and Energy Stocks
Market optimism was further strengthened by reports that U.S. President Donald Trump had concluded a trade deal with South Korea, and was set to meet Chinese President Xi Jinping later in the week to finalize a broader trade agreement.
Expectations of easing trade tensions between the world’s two largest economies — and top consumers of metals and oil — led to significant gains in commodity-related sectors.
- Nifty Oil & Gas Index rose 2.1%,
- Nifty Energy Index climbed 1.9%, and
- Nifty Metals Index advanced 1.7%.
These gains reflected investors’ optimism about improved global trade flows and higher demand for industrial commodities.
Stock Highlights: Adani Energy Shines, Coal India Slips
Among individual stocks, Adani Energy (ADAI.NS) surged 5%, buoyed by positive analyst reports highlighting growth in its transmission, distribution, and smart metering businesses, even as the company reported a slight decline in quarterly profit.
In contrast, Coal India (COAL.NS) fell 2.4% after posting a 30.3% drop in consolidated net profit for the September quarter, reflecting weaker coal demand and pricing pressure.
Asset management companies also came under pressure, with HDFC AMC (HDFA.NS) and Nippon Life India AMC (NIPF.NS) falling 4.3% and 5.2%, respectively. The declines followed the Securities and Exchange Board of India (SEBI) proposing new measures to simplify the mutual fund fee structure, potentially impacting revenue models across the sector.
Broader Market Strength
Beyond the large-cap space, mid-cap and small-cap indices also advanced, rising 0.6% and 0.4%, respectively. The rally indicates healthy investor participation across market segments as liquidity remains robust.
Market Outlook
Analysts expect the Federal Reserve’s policy outcome and progress in U.S.-China trade negotiations to shape near-term market direction. Lower global borrowing costs, combined with resilient domestic growth, could further attract foreign capital into India’s equity markets.
If both global catalysts — a rate cut and trade truce — materialize, India may see a continuation of bullish momentum heading into the final quarter of 2025.
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