New Delhi [India], October 29 (ANI): Indian stock markets rallied on Thursday, with the Sensex surging over 905 points and the Nifty gaining 1.05 per cent, as the US Federal Reserve's decision to keep interest rates unchanged, a marginal easing in crude oil prices and renewed institutional buying improved investor sentiment.

The Nifty 50 index closed at 22,936.75, gaining 237.90 points or 1.05 per cent, while the BSE Sensex closed at 74,151.04, rising 905.01 points or 1.24 per cent.

Vinod Nair, Head of Research at Geojit Investments, said Indian equities rallied as the Fed's rate pause, marginal easing in crude and renewed institutional buying improved risk appetite despite a challenging external backdrop.

'FMCG led gains on resilient consumer demand, while financials, IT, realty and power strengthened, with mid- and small-caps also participating, signalling healthier market breadth,' Nair said.

He added that recent foreign buying, alongside sustained domestic institutional support, had improved market liquidity. However, elevated input costs could test companies' profit margins, while high crude prices, rupee weakness, rising domestic bond yields and geopolitical uncertainty remained key risks.

On the National Stock Exchange, all sectoral indices closed in positive territory except Nifty Auto. Nifty FMCG gained 2.5 per cent, while Nifty IT rose 1 per cent and Nifty Media gained 1.2 per cent. Nifty Metal advanced 0.66 per cent, Nifty Pharma rose 0.48 per cent, and Nifty PSU Bank gained 1.9 per cent. Nifty Realty jumped more than 2 per cent, while Nifty Private Bank surged 1.98 per cent.

Among Nifty 50 stocks, Adani Ports, Adani Enterprises, Power Grid, Kotak Bank and Eternal were the top gainers. Trent, Maruti, SBI Life, Bajaj Auto and Hindalco were among the top losers.

Despite the market rally, Brent crude oil continued to trade at elevated levels, at USD 114.64 per barrel at the time of reporting. Gold prices declined 0.38 per cent to Rs 1,43,166 per 10 grams for 24 karats, while silver prices fell 1.36 per cent to Rs 1,91,686 per kg.

Rajeev Sharan, Head of Research at Brickwork Ratings, said the rupee's relief following the US Federal Reserve's decision proved short-lived.

'The rupee's relief after the US Fed proved short-lived on Thursday. It opened stronger by 11 paise at 95.17 after the Fed left rates unchanged, then turned sharply to a two-week low near 95.37 by the afternoon,' Sharan said.

He added that the rupee's movement showed that oil prices and dollar demand were exerting greater pressure than the Fed's decision, with the next US inflation reading also emerging as a key factor to watch.

Asian markets showed a mixed trend. Japan's Nikkei index closed 0.97 per cent higher at 64,582, while Singapore's Straits Times rose 0.05 per cent to 5,400. Hong Kong's Hang Seng declined 0.78 per cent to 22,916, Taiwan's weighted index fell 1.44 per cent to 46,368, and South Korea's KOSPI dropped 1.26 per cent to close at 5,937. (ANI)