GIFT NIFTY futures at 24,646 indicate a flat opening for Tuesday, August 4, as reported by Informist Media. This comes after Indian equity benchmarks rose for a fourth straight session on Monday, with SENSEX ending 0.7% or 544 points higher at 78,639 and NIFTY50 index advancing 1.6% or 391 points to close at 24,774, marking their highest levels in five months. The previous session's gap-up opening of 150-200 points had been supported by crude oil prices easing following US President Donald Trump's comments about possible peace talks with Iran, though Brent Crude futures have since risen 1.3% to $75 per barrel following latest developments in West Asia. The stable opening suggests domestic markets may continue defying regional trends, with technical analysts expecting the Nifty 50 to find support at 24,400 points and face resistance at 24,530 points.
Market attention will center on the Reserve Bank of India's three-day monetary policy committee meeting, with the central bank widely expected to hold the repo rate at 5.25% due to uncertainty over the impact of the war in West Asia and El Niño weather conditions on the economy and inflation. The policy meeting outcome is scheduled for Wednesday, as reported by Informist Media. Investors will be listening closely to the RBI Governor's commentary on liquidity, currency movements, economic growth, and the inflation outlook, with retail inflation, which stood at 4.38% in June, remaining a metric that the central bank watches carefully to ensure it stays within the target range. The benchmark indices ended lower on Tuesday, snapping a four-session winning streak as investors booked profits ahead of the RBI's monetary policy decision.
Foreign Portfolio Investors (FPIs) and Domestic Institutional Investors (DIIs) continue providing steady support for domestic equities, with FIIs buying shares worth ₹2,446.47 crore on August 4 and DIIs purchasing stocks worth ₹936.14 crore, according to Business Standard. The FIIs have bought shares worth ₹3,368.73 crore so far in August, following their cash sales of ₹5,778.99 crore in July, ₹49,028.63 crore in June and ₹55,963.33 crore in May. The Q1 FY27 earnings season gains momentum this week, featuring major companies including Bharti Airtel, ONGC, Power Grid Corporation, Trent, Hindalco Industries, State Bank of India, and Titan Company. Better June quarter earnings and a relatively stable rupee are providing additional support to market sentiment.
The stock exchanges implemented the new Closing Auction Session (CAS) mechanism for the equity cash segment from Monday, marking the first trading session under this new system. As reported by Informist Media, NSE recorded a turnover of ₹1,276.2 crore during the CAS session on Monday, while BSE turnover stood at ₹10.8 crore. ICICI Bank emerged as the top traded stock in terms of CAS turnover, followed by HDFC Bank, Reliance Industries, Infosys, and Bharti Airtel. This implementation is expected to change trading dynamics and may impact retail investor participation, which remains guarded due to ongoing adjustments to the new system that began from August 3.
Asian stock markets jumped on Wednesday as strong earnings and a resurgence of demand for tech lifted Wall Street to record peaks, with Brent crude easing 0.4% to $79.02 a barrel and US crude dropping 0.5% to $75.35, as reported by Business Standard. The pullback in oil provided some relief from inflation fears and boosted bonds globally, with 10-year Treasury yields now at 4.6187%, down from last week's high of 4.747%. Markets also sharply pared the probability of a September rate hike from the Federal Reserve to 57% from 67%. Overnight in the US, the S&P 500 and the Dow closed at record highs, with the Dow Jones Industrial Average rising 907.47 points or 1.71% to 54,085.88 and the Nasdaq Composite gaining 671.10 points or 2.59% to 26,584.99. Palantir Technologies soared 29.5% after raising its annual revenue forecast, while Caterpillar jumped 5.6% after raising its annual revenue growth forecast.
