Indian benchmark indices began Wednesday’s session on a firm note, reflecting strength in global equities as investors turned optimistic ahead of the US Federal Reserve’s key policy announcement. The S&P BSE Sensex advanced 153.31 points to trade at 84,781.47, while the NSE Nifty50 briefly crossed the 26,000 mark before settling just below it in early trade. The positive momentum was supported by gains across Asian markets, which tracked a rally in US technology shares driven by continued enthusiasm surrounding artificial intelligence-linked stocks.
Market sentiment remained upbeat as traders priced in expectations of a 25-basis-point rate cut by the US Federal Reserve later in the day. However, attention is shifting to the Fed’s commentary on its balance sheet reduction and future monetary policy path. Analysts say the tone of the central bank’s communication will be critical in determining the near-term trajectory of global markets, including India.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said global stock markets have maintained a bullish tone thanks to the sustained uptrend in the US, fueled by AI-related developments. He noted that while the expected rate cut has already been priced in, investors will be closely watching the Fed’s stance on quantitative tightening. He added that Nifty’s strong performance in the October derivatives series has reinforced a positive undertone, with the uptrend likely to extend into November. “We expect Nifty Bank to lead the next leg of gains, supported by heavyweights such as Bharti Airtel, Reliance Industries, and Larsen & Toubro,” Vijayakumar said.
From a technical standpoint, analysts observed that Nifty’s short-term trend remains constructive as long as it holds above key support levels. Anand James, Chief Market Strategist at Geojit Financial Services, said the index’s pullback after touching 26,000 briefly may have raised concerns, but the current chart pattern suggests limited downside pressure. “The doji formation indicates indecision but not enough bearish momentum to trigger a deeper correction. As long as Nifty stays above 25,900, we could see further upward attempts with potential resistance around 26,186–26,250,” he explained.
Meanwhile, broader market performance was mixed, with midcap and smallcap stocks showing selective strength. Analysts cautioned that volatility may persist through the session as investors await clarity from the Federal Reserve’s statement. The Fed’s decision and commentary are expected to guide the next phase of market movement globally, determining whether the current bullish sentiment can be sustained in the weeks ahead.
