The Prime Daily: 29 October 2026

Fed Keeps Rates Unchanged; Wall Street Closes Higher for Third Straight Day

U.S. equities ended higher for the third consecutive session as investors reacted to the Federal Reserve’s latest interest-rate decision and awaited earnings from mega-cap technology companies. The S&P 500 gained 0.28% to close at 7,743, the Nasdaq Composite added 0.27% to 26,549, and the Dow Jones Industrial Average rose 0.19%, to 52,475.

Chipmakers led the advance after SK Hynix reported record quarterly profit, lifting its U.S.-listed shares 13%. Micron Technology rose nearly 6%, while Arm Holdings, Marvell Technology, and AMD gained 4%, 3%, and 3%, respectively.

The Federal Reserve held its benchmark rate steady at 3.75%–4.00%, maintaining a patient stance as it awaits further evidence that inflation is returning to its 2% target. While the decision was widely expected, two FOMC members dissented in Favor of an immediate 25-basis-point increase, reflecting concern over persistent price pressures. The Fed described inflation as “elevated” and said additional data would guide future policy decisions.

The dollar weakened after the announcement, with the Dollar Index declining 0.2% to 102.15 and the euro rising to $1.1160. Market pricing now implies roughly an 85% probability of a Fed rate hike in December.

Oil prices fell today morning, paring the previous session’s gains, as hopes of peace talks eased concerns over potential Middle East supply disruptions. Brent crude futures declined 1.14%, to $110.37 a barrel while US West Texas Intermediate (WTI) crude futures are trading lower by 1.15%, at $101.57.

Asian markets are trading mixed after the Fed’s decision. Japan’s Nikkei 225 is up 0.1%, South Korea’s Kospi is down 3% following yesterday’s sharp rally, and Hong Kong’s Hang Seng is marginally lower.

India’s Index of Industrial Production (IIP) grew 6.7% year-on-year in September 2026, moderating from 8.0% in August. Manufacturing expanded 7.6% and electricity and gas supply rose 11.2%, while mining output contracted 6.2%, weighing on overall growth. Although the print marks a four-month low, it remains supportive of industrial momentum, with H1 FY27 IIP growth at 6.8%.

Coming to our markets, after a highly volatile session, Nifty ended the day 50 points lower at 22,698. However, broader markets outperformed for the third consecutive session. The Nifty Midcap 100 gained 0.43%, while the Nifty Smallcap 100 rose 0.9%. Market breadth remained positive, with the BSE advance–decline ratio at 1.10, reflecting sustained buying interest in mid- and small-cap stocks following last week’s sharp correction.

Four Nifty constituents—Asian Paints, Coal India, InterGlobe Aviation (IndiGo), and Trent—are scheduled to report quarterly results today.

Over the past five sessions, the Nifty has consolidated within a narrow 22,400–22,800 range. A decisive break of either end is likely to determine the next directional move. A sustained move above 22,800 could open the door for a rally toward 23,175, while a break below 22,400 may drag the index toward 22,180.

Price action over the next two sessions is likely to be shaped by today’s monthly derivatives expiry on the BSE and the outcomes of the European Central Bank and Bank of Japan policy decisions today and tomorrow, respectively. Both central banks are widely expected to keep rates unchanged. Beyond central banks, the November 3 U.S. midterm elections will be a major macro event, as voters will determine control of Congress.