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Sensex surges 815 points to 77,581, Nifty gains 1%, as IT stocks lead market rally amid US Fed decision and crude oil price volatility, with India VIX falling
The BSE Sensex jumped 815.93 points, or 1.06%, to trade at 77,581.85 at 11:52 am on July 29, as IT stocks continued to lead the market rally [2]. The surge in Sensex comes despite fresh US-Iran tensions and rising crude oil prices, which have raised concerns over global energy supplies and India's import bill.
| At a glance | |
|---|---|
| Sensex jump | 815.93 points |
| Nifty gain | 221.15 points (0.92%) |
| India VIX | -1.5% |
The market rally was driven by strong buying in IT stocks, with the Nifty IT index gaining nearly 2% [2]. The sector has emerged as a relative outperformer, even as technology shares across South Korea, Japan, and Taiwan have come under pressure. Indian IT companies have been criticized for "missing the AI bus" due to their lack of exposure to AI chip manufacturing and expensive AI infrastructure, but this weakness is now working in their favor [2]. As investors sell AI-linked semiconductor and hardware companies over concerns about high capital expenditure, stretched valuations, and uncertain returns, they are rotating into Indian IT companies, which follow an asset-light services model and have relatively little exposure to the AI infrastructure spending cycle.
The US Federal Reserve's interest rate decision, due later on Wednesday, is also being closely watched by investors [2]. Markets largely expect the Fed to leave interest rates unchanged, but investors will be monitoring Chair Jerome Powell's comments for clues on future policy moves amid persistent inflation concerns. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that a status quo has already been priced into markets, but a surprise early rate hike could have slightly negative implications for Indian markets [2].
The surge in Sensex and Nifty comes despite concerns over rising crude oil prices and fresh US-Iran tensions, which have raised concerns over global energy supplies and India's import bill. The market rally is being driven by strong buying in IT stocks, and investors are closely watching the US Federal Reserve's interest rate decision for clues on future policy moves. The real significance of the market rally will depend on the sustainability of the IT sector's outperformance and the impact of the US Federal Reserve's decision on Indian markets.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 29, 2026 · How we report
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