Sensex, Nifty 50 rise for second straight session ahead of US Fed policy— 10 key highlights from the Indian stock market

Market Overview

Indian equities witnessed another day of bullish sentiment as benchmark indices Sensex and Nifty 50 extended their gains for the second consecutive session on Tuesday, July 30. Investors displayed cautious optimism ahead of the highly anticipated interest rate decision by the US Federal Reserve due later this week.

The positive momentum was supported by robust earnings reports from key index constituents, steady global cues, and renewed buying in heavyweight sectors such as IT, auto, and FMCG. The broader markets, too, echoed the strength, with the Nifty Midcap 100 and Smallcap 100 outperforming the benchmarks.

10 Key Highlights from the Indian Stock Market Today

1. Sensex and Nifty Close Higher

The BSE Sensex climbed 412.29 points or 0.56% to settle at 74,020.43, while the NSE Nifty 50 rose 129.75 points or 0.58% to end at 22,521.70. Both indices closed near their intraday highs, signaling strong buying interest through the day.

2. Broader Market Participation Strong

The Nifty Midcap 100 surged 1.1%, while the Smallcap 100 gained 1.4%. Improved investor risk appetite was visible across broader market segments, particularly in industrials, consumer durables, and mid-tier financials.

3. IT and Auto Lead Sectoral Gains

The Nifty IT index rallied 1.3% driven by gains in Infosys, Wipro, and Tech Mahindra. Nifty Auto gained 1.1%, led by Tata Motors and Bajaj Auto on strong Q1 earnings optimism and consistent sales growth.

4. FMCG Stocks See Renewed Buying

FMCG majors like Hindustan Unilever, ITC, and Britannia Industries saw gains of over 0.8% as investors turned to defensives ahead of the Fed decision. This move also coincides with easing input cost pressures due to falling global commodity prices.

5. Banking Stocks Trade Mixed

While PSU banks showed strength, private sector banking majors like HDFC Bank and Kotak Mahindra Bank remained range-bound. The Nifty Bank index closed marginally higher at 48,910.40, up 0.22%.

6. US Fed Policy in Focus

Investors globally are on edge ahead of the US Federal Reserve's monetary policy outcome, due on Wednesday night (IST). While a status quo is widely expected, all eyes will be on commentary regarding inflation trajectory and timing of potential rate cuts.

“Markets are cautiously optimistic ahead of the Fed outcome. Any dovish tilt could boost global equities further,” said Ruchit Jain, Lead Research Analyst at 5paisa.com.

7. FIIs Turn Net Buyers

Foreign institutional investors (FIIs) were net buyers for the second straight session, infusing ₹1,238 crore on Monday, as per provisional NSE data. The recent FII activity indicates growing confidence in Indian equities amid stable macroeconomic indicators.

8. Rupee Firms Up Against Dollar

The Indian rupee appreciated by 11 paise to close at 82.82 per US dollar, tracking weakness in the greenback globally. Softer crude oil prices and FII inflows supported the local currency.

9. Volatility Index Declines

India VIX, the volatility gauge, dropped by 2.3% to 11.19, reflecting reduced fear in the market. This suggests that investors are not anticipating significant short-term shocks, barring any unexpected global developments.

10. Corporate Earnings Drive Momentum

Robust earnings by companies like Tata Motors, Bharti Airtel, and Bajaj Finance have helped sustain investor sentiment. The earnings season so far has been broadly in line with Street expectations, with positive surprises from several mid-cap names.

Global Market Context

Asian markets traded in the green, with Japan’s Nikkei 225 and South Korea’s KOSPI closing higher. European markets opened flat but steady, while Wall Street futures showed marginal gains ahead of corporate earnings and macro data releases.

Commodities were relatively stable, with Brent crude hovering around $82.30 per barrel, and gold prices holding steady at $2,365 per ounce, as investors awaited the Fed’s direction.

Expert Commentary

“The market is riding a wave of optimism driven by positive earnings, improving macro data, and hopes of a Fed pause. However, with valuations slightly stretched, some consolidation may be warranted in the near term,” said Meera Shah, Senior Analyst at Nirmal Bang Securities.

“Broader markets are witnessing healthy participation, suggesting investor confidence in India’s structural growth story. Any dovish stance from the Fed could fuel further upside in mid and small caps,” added Rahul Arora, CEO at Negen Capital.

Investor Outlook

With the Fed policy decision looming, Indian markets are likely to remain range-bound for the next session, with a possible breakout depending on global cues. Technical indicators suggest the Nifty 50 has strong support at 22,300 and resistance around 22,600.

Investors are advised to tread cautiously and focus on stock-specific moves, especially as the earnings season nears its peak. Defensive sectors like FMCG and IT, along with quality midcaps, may continue to draw interest in the short term.