Tuesday, October 28, 2025

Sensex, Nifty trade higher on Federal Reserve rate cut hopes, prospects of U.S.–China deal

Image used for representational purposes only. File

Image used for representational purposes only. File

Sensex, Nifty trade higher on Fed rate cut hopes, prospects of U.S.–China deal. Equity benchmark indices Sensex and Nifty were trading higher early on Tuesday (October 26, 2025), driven by hopes of a rate cut by the Federal Reserve and prospects of a U.S.–China trade deal.

The 30-share BSE Sensex climbed 125.93 points to 84,904.77 in early trade. The 50-share NSE Nifty went up by 39.8 points to 26,005.85.

Among the Sensex firms, State Bank of India, Tata Steel, Larsen & Toubro, Adani Ports, Titan, and Maruti were among the major gainers. However, ICICI Bank, Bajaj Finance, Bajaj Finserv, and Asian Paints were among the laggards.

In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index traded lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng quoted higher.

U.S. markets ended in positive territory on Monday (October 27, 2025).

“Market sentiment remains upbeat, supported by five catalysts: A softer U.S. CPI boosting rate cut hopes, prospects of a U.S.–China trade deal, FII inflows in recent sessions, record-high Wall Street indices, and a strong start to Q2 earnings,” Prashanth Tapse, senior vice-president (Research) of Mehta Ltd., said.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹55.58 crore on Monday (October 28), according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹2,492.12 crore in the previous trade.

“New flows indicate continuation of the positive momentum in the market. There are indications of a possible agreement between the U.S. and China on tariffs. A near-term positive for the market is the expectation that the Fed would cut rates in the FOMC [Federal Open Market Committee] meet on Wednesday (October 29) since U.S. CPI inflation (3% YoY) is not as high as feared,” V.K. Vijayakumar, chief investment strategist, Geojit Investments Limited, said.

Global oil benchmark Brent crude traded 0.05% up at $65.65 a barrel. On Monday (October 27), the 30-share BSE Sensex jumped 566.96 points or 0.67% to settle at 84,778.84. The Nifty climbed 170.90 points or 0.66% to 25,966.05.

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