The Prime Daily 28 October 2026

Indian Markets ended flat after choppy session; Mid & Smallcaps Continue to Shine

Wall Street Ends Higher on AI Optimism; All Eyes on Fed Rate Decision Today

U.S. equities ended higher on Tuesday, led by a further rebound in technology stocks after last week’s sell-off, triggered by concerns over the sustainability of the AI investment boom.

The broad market index, S&P 500 rose 0.6% to close at 7,722, while the Dow Jones Industrial Average added 0.03%, to finish at 52,377. The Nasdaq Composite gained 1.18% to settle at 26,477.

Chip stocks extended their rally after Broadcom announced that a group of banks would provide $63 billion in financing to purchase its AI chips and networking solutions, which will be leased to Anthropic, the company behind Claude. Broadcom rose 4%, Advanced Micro Devices climbed 5.5%, and Micron Technology gained 2.8%.

Oil prices edged higher today by 1.5% after attack on Saudi Arabian refinery reignites supply concerns.

Investor attention now shifts to the outcome of the Federal Reserve’s policy meeting today. The central bank is widely expected to keep its benchmark interest rate unchanged at 3.75%–4.00%, while markets will look for clues on whether it may raise rates again before year-end. Fed funds futures are pricing in roughly a 92% probability that the Fed will hold rates steady, according to the CME FedWatch Tool.

At its September meeting, the Fed raised interest rates by 25 basis points. Investors will closely assess the policy statement and Chair Kevin Warsh’s comments for signals on the future direction of U.S. monetary policy.

The decision and forward guidance could influence global bond yields, the U.S. dollar, emerging-market capital flows, and equity valuations. Wall Street is also monitoring the November 3 U.S. midterm elections, which will determine control of Congress.

Asian markets are trading higher today, tracking Wall Street’s gains amid renewed appetite for AI-related stocks. South Korea’s Kospi and Japan’s Nikkei 225 are up 6% and 1.4%, respectively, while Hong Kong’s Hang Seng is trading with marginal gains.

Coming to our markets, Nifty ended flat at 22,749 yesterday amid monthly derivatives expiry, after a sharp recovery from lower levels. The index remained volatile through the session holding firm in the first half, correcting nearly 200 points from the day’s high in mid-session, and recovering part of the losses in the final hour.

Broader markets outperformed for a second consecutive day. The Nifty Midcap 100 rose 1%, while the Nifty Smallcap 100 surged 2.7%. Market breadth improved sharply, with the BSE advance–decline ratio at 2.13 the highest since July 9 reflecting renewed buying interest in mid- and small-cap stocks after last week’s steep correction.

The Indian rupee snapped a three-day losing streak, appreciating 8 paise to close at 95.11. With three key central-bank decisions scheduled this week, currency volatility is likely to remain elevated.

Three Nifty constituents Adani Enterprises, Adani Ports, and Hindustan Unilever are scheduled to report their quarterly results today.

Nifty gained 0.15% in the October series, after a sharp fall of 6.65% decline in the September series. The index’s recovery from its early-series low was supported by a strong rally in IT stocks and short covering by foreign institutional investors (FIIs). Bank Nifty underperformed, losing 0.53% during the October series.

FIIs’ long-to-short ratio in index futures at the beginning of the November series stood at 0.13 the highest since the start of the June series compared with 0.09 at the beginning of the October series. Short positions accounted for nearly 88% of their total index futures exposure, down from 92% in the previous series, indicating early signs of easing bearish positioning. Despite this moderation, their short exposure remains substantial, leaving room for further short covering that could support a near-term market rebound.

Yesterday, the 20-day exponential moving average (DEMA) at 22,825 acted as a key intraday hurdle, and the Nifty reversed lower after testing it. However, the index held comfortably above Friday’s swing low, retaining short-term strength.

A sustained move above 22,825 would clear the 20-DEMA resistance and open the door for a move toward 23,175. On the downside, the 22,350–22,400 zone remains a key support band.

Price action over the next few sessions is likely to be shaped by the monthly derivatives expiry on the BSE and the outcomes of key central-banks policy decisions due over the next three days.

Jio Platforms to Debut on Stock Exchanges Today

Shares of Jio Platforms, the telecom and digital services arm of Reliance Industries, are set to make their stock market debut today following India’s biggest-ever initial public offering (IPO). Jio’s public issue was subscribed 22.19 times, with qualified institutional buyers (QIBs) leading the demand. The QIB portion was subscribed 70.55 times. Retail category was subscribed 2.72 times.

Nifty is likely to open lower today, tracking Higher Crude Oil Prices