US Fed Rate Pause Boosts Indian Markets Amid Geopolitical Risk

The Federal Reserve Bank of the US maintained its benchmark interest rate within a target range of 3.75% to 4%, triggering a decline in US 10-year yields. This policy pause initially boosted investor sentiment in India, driving the BSE Sensex up 905.01 points to 74,151.04 and the NSE Nifty up 237.90 points to 22,936.75, with significant gains in banking and infrastructure.

By October 30, Indian benchmarks opened flat to modestly higher as global sentiment turned cautious. While information technology stocks like TCS and Infosys surged due to a global rotation away from artificial intelligence trades following poor earnings from Amazon and Intel, other sectors including cement and consumer durables declined. Individual stock performance varied, with Trent shares rising nearly 6% on strong profits while Suzlon Energy fell 6.3% after a sharp drop in net profit.

Macroeconomic pressure persisted as Brent crude oil prices remained elevated above $113 per barrel. This volatility followed reports that a senior commander briefed President Donald Trump on military options to resume combat operations against Iran after the November 3 mid-term elections. Investment flows remained divided, with domestic institutional investors buying ₹1,924 crore in shares while foreign portfolio investors sold ₹943 crore.