Nifty, Sensex Set for Cautious Start as RBI Decision and Tariff Risks Loom
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
On Wednesday, August 6, benchmark indices Nifty and Sensex are likely to open cautiously, as indicated by Gift Nifty, which was trading 25 points lower near the 24,679 mark at 7:14 AM.
Pre-Market Update at 7:45 AM: On Wednesday, August 6, benchmark indices Nifty and Sensex are likely to open cautiously, as indicated by Gift Nifty, which was trading 25 points lower near the 24,679 mark at 7:14 AM. The market awaits the outcome of the Reserve Bank of India’s (RBI) three-day Monetary Policy Committee (MPC) meeting. The MPC is expected to keep interest rates unchanged at 5.50 per cent, but investor focus will remain on the RBI’s forward guidance.
Global cues remain mixed. Asian markets traded without clear direction, and Wall Street closed lower amid growing concerns over new tariff announcements. US President Donald Trump has signaled that the US may impose higher tariffs on India within 24 hours, citing New Delhi’s continued energy ties with Moscow. He also mentioned possible new tariffs on pharmaceuticals and semiconductors, which could impact trade-sensitive sectors globally.
Back home, key Q1 FY26 earnings announcements today include Bajaj Auto, Trent, Divis Laboratories, Bajaj Holdings & Investment, Pidilite Industries, Power Finance Corporation, Hero Motocorp, Bharat Heavy Electricals, Fortis Healthcare, UNO Minda, Jindal Stainless, Bharat Forge, HUDCO, KPR Mill, Blue Star, and Krishna Institute of Medical Sciences. These earnings will likely trigger stock-specific action across Large-Cap and Mid-Cap segments.
On the institutional front, Foreign Institutional Investors (FIIs) remained net sellers on August 5, offloading equities worth Rs 22.48 crore, extending their selling streak to 11 sessions. In contrast, Domestic Institutional Investors (DIIs) bought shares worth Rs 3,840.3 crore, marking 21 consecutive days of net buying.
The market ended Tuesday in negative territory, reacting to Trump’s tariff remarks. The Nifty 50 slipped 73 points to 24,649, while the Sensex lost 308 points to close at 80,710. Bank Nifty declined by 259 points to end at 55,360.
In the US, the Dow Jones Industrial Average fell 61.90 points to 44,111.74, the S&P 500 lost 30.75 points to 6,299.19, and the Nasdaq Composite declined by 137.03 points to 20,916.55. Earnings reports from companies like Yum Brands also highlighted tariff risks.
On the macroeconomic front, the US trade deficit narrowed by 16 per cent to USD 60.2 billion in June, mainly due to a fall in consumer goods imports. However, the US services sector showed weakness, with the ISM non-manufacturing PMI slipping to 50.1 in July from 50.8 in June.
In commodities, gold prices rose for the fifth straight session, backed by expectations of a possible rate cut by the US Federal Reserve. Spot gold was marginally lower at USD 3,378 per ounce in early trade. Crude oil prices traded firm, with Brent crude at USD 67.93 per barrel and WTI crude at USD 65.40 per barrel.
For today, PNB Housing remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.