Sensex Jumps 889 Points as IT Stocks Rally Pre-Fed

The BSE Sensex closed 889 points, or 1.16%, higher at 77,654.60 on July 29, 2026, while the NSE Nifty settled 265 points, or 1.1%, up at 24,250.20, as Indian equities rallied ahead of the US Federal Reserve’s rate decision. The session opened with the Sensex jumping 657.85 points to 77,423.77 and the Nifty gaining 191.3 points to 24,176.65, with gains extending through the day.

IT stocks led the rally, with Infosys, TCS and L&T among the top gainers as investors positioned ahead of the Federal Open Market Committee meeting outcome, which markets globally were watching for signals on the pace of US rate cuts.

What Drove the Sensex and Nifty Rally on July 29?

The broad-based rally was driven by renewed buying in IT and technology stocks, which are highly sensitive to US interest rate expectations given their dollar-denominated revenue exposure, alongside gains in FMCG and metals. Jio Financial Services, Hindustan Unilever and Infosys were the top gainers on the Nifty 50, while sector indices for IT, metal and FMCG outperformed the broader market. The Nifty Realty and Nifty Auto indices underperformed, lagging the overall rally as investors rotated into export-linked and defensive names ahead of the Fed decision.

What Do Market Analysts Say?

Analysts attributed the rally to a combination of favourable global cues and expectations that the Fed would signal a dovish stance, which typically benefits emerging market equities and IT exporters whose earnings are translated from dollar revenues. Broader market segments also participated strongly, with the Nifty MidCap and Nifty SmallCap indices rising 0.82% and 1.48% respectively, suggesting the buying was not limited to large-cap index heavyweights but reflected wider risk appetite among domestic and foreign investors.

Market and Trade Reaction

The rally came against a backdrop of ongoing trade policy uncertainty, including the recent Section 301 tariff action affecting Indian exporters, indicating that domestic equity sentiment on the day was driven more by monetary policy expectations than by trade headwinds. Foreign portfolio flows and mixed global cues, referenced by market commentary through the session, contributed to volatility even as the indices closed near their highs of the day.

What Happens Next?

Markets will watch the confirmed outcome of the US Federal Reserve’s rate decision for direction in the coming sessions, along with ongoing corporate earnings releases for the June quarter that are due through the first half of August. Analysts expect volatility to persist as investors weigh the Fed’s guidance against domestic factors including monsoon progress and the trajectory of India’s trade negotiations with the US and EU.

Frequently Asked Questions

Why did the Sensex and Nifty rise sharply on July 29, 2026?

The Sensex rose 889 points and the Nifty gained 265 points, led by IT stocks, as investors positioned ahead of the US Federal Reserve’s rate decision, which markets expected to influence emerging market equity flows.

Which stocks led the Sensex rally?

Jio Financial Services, Hindustan Unilever and Infosys were the top gainers on the Nifty 50, with the Nifty IT, Metal and FMCG sector indices outperforming the broader market.

Which sectors underperformed during the rally?

The Nifty Realty and Nifty Auto indices underperformed relative to the broader market during the July 29, 2026 trading session.