Sensex, Nifty See Sharp Rebound From Day's Low Amid US Fed Rate Cut Hopes, Trump-Xi Talks

Domestic benchmark indices saw a sharp recovery towards the fag-end of the session on October 28 amid positive global cues and weekly expiry in Nifty indices.

At close, Sensex was at 84,628.16, down 150.68, or 0.18 per cent. During the session, the 30-share index touched a low of 84,219.39.

Likewise, Nifty 50 index slipped to a low of 25,810.05 before closing at 25,936.20, down 29.85 points, or 0.11 per cent from previous close.

Broader markets mirrored the headline indices, staging a sharp recovery from intraday lows. The Nifty Midcap 100 and Nifty Smallcap 100 erased losses to end flat after spending most of the session in the red. The Nifty 500 index slipped 0.12 per cent, while the Nifty Microcap 250 settled 0.23 per cent higher.

The market recovery comes as investors bet on a US Federal Reserve rate cut later this week. After last week's softer-than-expected inflation data, the Fed is widely expected to lower interest rates by 25 basis points at its policy meeting on October 28-29. According to the CME FedWatch Tool, 97.8 per cent of traders are pricing in a quarter-point cut.

Meanwhile, US President Donald Trump is set to meet Chinese President Xi Jinping in South Korea this week for crucial talks as tensions over trade and global politics continue. The two leaders are scheduled to meet on October 30, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

Metals, PSU Banks Lead

Among sectors, metals and PSU banks led the rebound, with the Nifty Metal and Nifty PSU Bank indices climbing over 1.2 per cent each. On the other hand, realty stocks came under pressure, with the Nifty Realty index falling 1.05 per cent to emerge as the top sectoral loser. Other sectors, including auto, energy, financial services, FMCG, IT, pharma, and consumer durables, also ended lower.

Nifty 50: Top Gainers & Losers

Among the top gainers from Nifty 50 index were JSW Steel, Tata Steel, SBI Life Insurance, Larsen & Toubro, HDFC Life Insurance, Eicher Motors and Hindalco. Jio Financial Services, Sate Bank of India (SBI), Dr Reddy's Laboratories and Kotak Mahindra Bank were also among the top gainers.

On the other hand, Bajaj Finserv, Trent, Cola India, Tech Mahindra, and ONGC emerged as the top losers of the session. Nestle India, Power Grid, Cipla, Mahindra & Mahindra, ICICI Bank, and NTPC were also among the biggest losers.

Stock Market Outlook

Market participants will be tracking US Federal Reserve's Federal Open Market Committee's (FOMC) meeting outcome on October 29. Focus will also be on Trump-Xi meet later this week.

"Market sentiment is expected to be supported by easing global trade tensions and expectations of an upgrade in domestic corporate earnings, which continue to reinforce resilience," said Vinod Nair, Head of Research, Geojit Investments.