New Delhi, October 29, 2026: The US Federal Reserve’s decision to keep interest rates unchanged has once again brought attention to the changing global capital environment, with entrepreneurs and investors closely watching how higher borrowing costs and selective funding conditions could impact business growth.
The Fed maintained its current interest-rate stance, while indicating that future policy decisions will depend on inflation trends and economic data. The decision was largely expected by markets, leading investors to shift their focus towards corporate earnings, liquidity conditions and the outlook for global growth.
For entrepreneurs, the key takeaway from the latest policy move is the continued shift away from the era of easy money. With capital becoming more expensive, investors are increasingly focusing on profitability, strong fundamentals and sustainable growth models.
Entrepreneurs Face More Selective Funding Environment
Zerodha Founder and CEO Nithin Kamath has previously highlighted how rising cost of capital has changed the startup ecosystem.
Talking about the impact of changing funding conditions, Kamath said:
“When the cost was zero, it was easier to take a bet saying that this company will be profitable five years from now… but the cost of capital has gone up multi-fold.”
His comments reflect the challenges faced by startups that rely on external funding for expansion. As interest rates remain elevated, investors are becoming more cautious and evaluating companies on revenue growth, operational efficiency and the ability to achieve profitability.
The shift has already changed startup strategies, with many companies prioritising cost control, improving unit economics and building sustainable business models.
Global Earnings Add Fresh Market Concerns
The Fed decision came amid a mixed earnings season ongoing in global markets, particularly among tech and AI companies.
Alphabet reported weaker-than-expected quarterly results, creating concerns around rising artificial intelligence investments and increasing capital expenditure requirements.
Meanwhile, Microsoft reported stronger results, supported by continued growth in its Azure cloud business. The performance highlighted investor interest in companies that can demonstrate clear returns from AI and technology investments.
The contrasting results indicate that investors are becoming more selective, rewarding businesses that combine innovation with financial discipline.
Indian Markets Track Expiry, Earnings and Institutional Flows
Indian equities remained focused on multiple domestic triggers, including monthly derivatives expiry, quarterly earnings and institutional activity.
Market participants continued tracking key Nifty levels, with resistance around 22,800 and support near 22,500 remaining important zones for short-term market movement.
Foreign Institutional Investors (FIIs) remained cautious despite buying activity in the cash segment, as their positioning in derivatives reflected uncertainty around global cues.
Corporate Earnings Highlight Growth and Margin Pressure
The ongoing earnings season provided mixed signals across sectors.
Hero MotoCorp reported growth in revenue and profit, although operating margins remained under pressure. Pidilite Industries delivered revenue growth but faced margin challenges.
Bandhan Bank reported improvement in profitability and asset quality, while United Spirits posted softer earnings. SFS Motors recorded strong revenue growth but faced pressure on profits and margins.
The results highlighted a broader business trend, companies are focusing not only on expansion but also on efficiency and profitability.
