Indian equity markets experienced a significant rebound on Thursday, October 29, 2026, as both the Sensex and Nifty indices posted substantial gains. The 30-share BSE Sensex surged 905.01 points, or 1.24 percent, to close at 74,151.04, while the NSE Nifty index advanced 237.90 points, or 1.05 percent, ending the day at 22,936.75. This strong performance has led many to question if the worst of the recent market correction is finally over.
Factors Driving the Indian Stock Market Recovery
The impressive rally was fueled by several positive factors, including improved investor sentiment and favorable domestic cues. Buying interest was broad-based, with realty, FMCG, and select banking stocks leading the charge. This widespread participation suggests a healthier market outlook following recent volatility.
Dinshaw S Irani, CEO of Helios Capital India, told Business Today that the worst may indeed be behind Indian markets. He pointed to a further strengthening of the rupee and better-than-expected Q2 FY27 corporate earnings as key impetuses for continued growth.
Expert Perspectives on Market Outlook
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, highlighted the positive Q2 FY27 earnings season, noting an absence of major negative surprises. He also observed that crude oil prices, while remaining elevated, had cooled from their peaks. Bathini advised investors to adopt a 'buy-on-dips' and 'sell-on-rallies' strategy, suggesting that some bottom fishing has already occurred. The US Federal Reserve's decision to maintain the status quo on interest rates also provided a positive backdrop for the domestic market in the short to medium term.
Ajit Mishra, SVP (Research) at Religare Broking, echoed the sentiment regarding the US Fed's decision to keep benchmark interest rates at 3.75–4 percent. However, he cautioned that global bond yields, dollar movements, and expectations surrounding future interest rate trajectories would remain critical focal points. Mishra also noted that Brent crude continued to trade at elevated levels of around $114–115 per barrel due to persistent concerns over potential supply disruptions in West Asia.
Technical Levels and Investment Advice
From a technical standpoint, Mishra believes the 22,500–22,700 zone will serve as immediate support for the Nifty50, with the broader 22,200–22,400 band acting as an important downside reference. He advised traders to use the rebound selectively, avoid aggressive leverage, and maintain disciplined risk management. For investors, staggered accumulation in fundamentally strong companies at reasonable valuations was suggested, alongside close monitoring of crude oil prices, foreign fund flows, and global bond yields.
“The Q2 FY27 earnings season has been positive, with no major negative surprises. Crude oil prices remained elevated but cooled from their highs. Some bottom fishing has taken place, and investors should follow a 'buy-on-dips' and 'sell-on-rallies' strategy,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Sustained buying across various sectors will be crucial for the current Indian stock market recovery to gain further momentum and confirm a lasting turnaround.