Indian equity benchmarks opened cautiously higher on Thursday, August 6, with SENSEX climbing 201.43 points to 78,782.43 in opening trade and NIFTY50 marginally up 16.35 points to 24,641. According to The Hindu, markets rose as lower crude oil prices boosted Reliance Industries and other energy-related stocks. The benchmarks had closed nearly unchanged on Wednesday with SENSEX ending 152 points higher at 78,581 and NIFTY50 advancing 10 points to close at 24,625. Among NIFTY50 gainers, Titan, Reliance Industries, Eternal, Bharat Electronics, State Bank of India and Asian Paints were among the major winners, while Power Grid, Trent, Mahindra & Mahindra and Axis Bank were among the laggards. As per The Hindu BusinessLine, markets opened on a cautious note after the Reserve Bank of India held its repo rate steady at 5.25% and raised its GDP growth forecast for FY27 to 6.7%.
The RBI maintained the repo rate at 5.25% and raised its GDP growth forecast for FY27 to 6.7%, a decision that was widely anticipated by markets. As per The Hindu, the six-member Monetary Policy Committee unanimously voted to keep the policy repo rate unchanged at 5.25%, with Governor Sanjay Malhotra saying the next move of the central bank on interest rates, as well as policy stance, will be data dependent. The central bank marginally raised the GDP forecast for the current fiscal to 6.7% while slightly lowering the inflation projection to 5%. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the policy carried a clear signal: "rate hike is some time away, and therefore, interest elastic sectors are unlikely to be influenced by interest rates in the near-term." He added that financials, particularly NBFCs, and automobiles are performing well on the back of strong demand fundamentals, with Q1 results reflecting sustained growth momentum. The decision provided stability to markets after initial volatility, helping restore investor confidence as the central bank highlighted the economy's resilience despite a slight uptick in headline CPI inflation during the first quarter of FY27.
On Wednesday, India's benchmark equity indices settled nearly unchanged after the Reserve Bank of India left the repo rate unchanged at 5.25% and highlighted the economy's resilience despite a slight uptick in headline CPI inflation during the first quarter of FY27. The 30-share BSE Sensex gained 152.05 points, or 0.19%, to close at 78,581, while the NSE Nifty 50 added 9.75 points, or 0.04%, to settle at 24,624.65. As per Ajit Mishra from Religare Broking, markets traded volatile and ended on a flat note amid mixed cues, with the Nifty remaining under corrective pressure for most of the session before a recovery in the final hour helped trim losses. The NIFTY50 closed almost flat on Wednesday amid final-hour pricing volatility, but managed to defend the 200-EMA moving average, indicating sustained momentum in the index at higher levels. The 24,750 level remains a crucial resistance for NIFTY50, and the 200-EMA level of 24,500 remains a crucial support in the near term, with price consolidation expected to continue as final-hour volatility due to the CAS pricing mechanism settles.
Global sentiment remained mixed overnight with Wall Street delivering a split verdict, the Dow Jones rose 0.5% to a record close while the S&P 500 slipped 0.2% and the Nasdaq fell 0.8% on a late-session selloff in technology stocks. ADP data showed US private payrolls added just 44,000 jobs in July, well below the 69,000 expected and down sharply from June's 95,000, sharpening market focus on Friday's official nonfarm payrolls report. Asian markets were trading lower, with South Korea's KOSPI, Japan's Nikkei 225 index and Hong Kong's Hang Seng index traded sharply lower, while Shanghai's SSE Composite index quoted marginally higher. Brent crude, the global oil benchmark, traded 0.13% lower at $79.35 per barrel, providing support to energy-related stocks like Reliance Industries. The Indian rupee strengthened 13 paise to close provisionally at 95.15 against the US dollar on Wednesday, its strongest level since early July, aided by a weaker greenback and Brent crude slipping below $80 per barrel. Forex reserves hit a three-month high, and sugar prices touched record levels, adding complexity to the inflation picture even as the RBI lowered its inflation outlook.
According to The Hindu BusinessLine, Nifty holds above all key moving averages with short-term support at 24,500–24,450 and resistance at 24,700–24,750, adding that "a breakout above 24,750 could propel the market towards 24,850–24,900." Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the benchmark index formed a bullish hammer-like candlestick on the daily chart, indicating buying interest emerging at lower levels. The Nifty recently broke above a three-month triangular consolidation pattern, reinforcing the broader bullish trend. While the index has paused after rallying more than 1,100 points over the previous seven trading sessions, analysts believe the current consolidation is healthy and could help establish a stronger base for the next leg of the rally. The change in open interest data on Wednesday indicates strong open interest buildup on the higher side, indicating strong resistance at every level, with the 25,000 calls holding the highest open interest and 24,200 puts holding the highest open interest, indicating strong support for the index. Benchmark indices have been facing divergence since Monday after stock exchanges introduced a new auction mechanism for shares having futures and options contracts, with the Closing Auction Session (CAS) in the equity cash segment becoming operational on Monday, introducing a new auction-based mechanism for determining closing prices.
Bajaj Broking Research noted that Bank Nifty traded within a narrow range during Wednesday's session and formed an inside-bar candlestick, reflecting indecision following recent profit booking. However, the index managed to hold above its 20-day EMA, suggesting buying interest continues to emerge at lower levels. The index continues to consolidate within the broader 56,500-58,700 range that has been in place over the past seven weeks. A decisive breakout above 58,700 would signal a resumption of the uptrend, opening the door towards 59,300 and 60,000 in the coming sessions. Immediate support for Bank Nifty is placed near 57,400, followed by the 57,000-56,800 zone, while resistance is seen around 58,000-58,100. As per The Hindu BusinessLine, pharmaceuticals and telecom sectors reported strong Q1 results, with analysts pointing to better prospects ahead, while the broader earnings season continues to dominate stock-specific action across sectors. Foreign Institutional Investors (FIIs) offloaded equities worth ₹943.42 crore on Wednesday, according to exchange data, highlighting continued foreign selling pressure despite positive domestic market sentiment.
