Indian benchmark equity indices ended lower on August 4, snapping a four-session winning streak as investors booked profits amid weekly derivatives expiry, heightened volatility following the rollout of the NSE's new Closing Auction Session (CAS), and caution ahead of the Reserve Bank of India's monetary policy decision. The BSE Sensex closed down 210.08 points or 0.27% at 78,428.95, while the NSE Nifty50 fell 159.40 points or 0.64% to 24,614.90. The broader market showed mixed performance, with the BSE 150 MidCap index declining 0.3% and the BSE 250 SmallCap index managing a marginal gain of 0.2%, outperforming the frontline indices. Market breadth remained slightly negative with the BSE advance-decline ratio at 0.99, indicating that declining stocks slightly outnumbered advancing ones. Among Nifty50 constituents, the biggest losers were Grasim Industries (down 3.74%), HDFC Life (down 1.46%) and Bajaj Auto (down 1.46%). Apollo Hospitals, Hindalco, and Trent led gains, while Realty, Oil & Gas, FMCG, and IT were the worst-performing sectors, with Media and Metal being the only sectoral indices to close in the green.
The Reserve Bank of India's three-day Monetary Policy Committee (MPC) meeting entered its second day on Tuesday, 4 August 2026, with RBI Governor Sanjay Malhotra scheduled to announce the policy decision on Wednesday, 5 August 2026. Market participants are closely monitoring the central bank's commentary on inflation, economic growth and the outlook for interest rates. The policy decision is expected to set the tone for domestic markets in the near term, with investors particularly focused on the central bank's stance on monetary policy and its assessment of economic conditions that could influence future interest rate movements. Market experts expect the MPC to maintain the status quo on the repo rate at 5.25%, with a neutral stance representing a pause rather than a change in the broader direction of policy. While a rate cut is not widely anticipated, the tone of the central bank's commentary on inflation and growth will be closely watched.
Several companies reported significant quarterly results that impacted individual stock performance. Life Insurance Corporation of India (LIC) fell 7-8% as the government launched an offer for sale (OFS) to pare its stake, with the government offering up to 31,62,49,885 equity shares (2.50% equity) at a floor price of ₹382 per share, representing a 10.85% discount to LIC's previous closing price. The government is looking to offload up to a 6.5% stake at a floor price of ₹382 per share, a move that could raise nearly ₹31,000 crore and bring its holding down to 90%, in line with SEBI's public shareholding norms. BSE reported a significant profit increase for the June quarter, with consolidated net profit attributable to shareholders rising 62% year-on-year to ₹874 crore, compared with ₹539 crore in the same quarter last year. Bharti Airtel on Tuesday reported a consolidated net profit of ₹8,167 crore for the April-June quarter of FY27, marking a more than 37% year-on-year increase from the ₹5,948 crore net profit reported in the same period last year. Nykaa reported a more than three-fold rise in quarterly profit to ₹80 crore ($8.39 million) in the quarter ended June 2026, from ₹23.3 crore a year earlier, boosted by growth in its beauty business and sharp acceleration in fashion sales.
According to Anand Rathi, the broader technical structure of the Nifty remains constructive despite Tuesday's sharp intraday swings. The brokerage noted that after ending the previous session near the 24,775 level, the benchmark index opened with a gap-down and remained under selling pressure for most of the trading day, slipping close to the 24,400 mark. However, strong buying during the final minutes of trade helped the index recover a significant portion of its losses and close near 24,600. Analysts believe the late-session recovery indicates that buying interest continues to emerge at lower levels, keeping the broader uptrend intact despite recent volatility. The immediate support zone for the Nifty has shifted higher to the 24,400-24,300 range, while the index is still expected to gradually move towards the 25,000 mark and beyond over the coming sessions. The brokerage continues to maintain a bullish "buy on dips" approach for the benchmark index.
According to Anand Rathi, Bank Nifty continues to consolidate just below an important resistance zone between 58,500 and 58,600, where the index has repeatedly faced selling pressure in recent sessions. A decisive breakout above 58,600 could pave the way for a fresh rally towards the psychologically significant 60,000 level. "Bank Nifty continues to consolidate near the 58,500-58,600 resistance zone, where multiple tops have been formed over the past few sessions. A decisive breakout above this hurdle is likely to trigger a fresh leg of the rally towards the 60,000 mark. Hence, traders can consider fresh long positions only above 58,600. On the downside, the 57,300-57,000 zone is expected to act as a strong support for the coming sessions," stated Anand Rathi's report. Market participants will also monitor the latest US jobs data and Composite and Services Purchasing Managers' Index (PMI) readings from the United Kingdom and the United States for fresh global cues.
