Sensex Rises Over 300 Points as Investors Await RBI Policy Decision and Q1 Results

Market Update at 12:30 PM: Benchmark equity indices traded in positive territory on Monday, August 4, amid subdued global cues. Investors remained focused on ongoing Q1 FY26 corporate earnings and the upcoming three-day Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting scheduled from August 4 to August 6. According to a Business Standard poll, 60 per cent of respondents expect the six-member MPC to maintain status quo on key policy rates.

As of 12:00 PM, the BSE Sensex was trading at 80,913.61, marking a rise of over 300 points or 0.38 per cent. Similarly, the Nifty50 index was up by 107 points or 0.44 per cent at 24,674.

Large-Cap stocks like Tata Steel, Bharat Electronics Ltd (BEL), Bajaj Finserv, Asian Paints, and UltraTech Cements were among the Top Gainers on the Sensex. On the flip side, Infosys, Eternal (Zomato), Tech Mahindra, and ICICI Bank were the major laggards, witnessing mild profit booking.

Broader markets also moved higher, with the Nifty MidCap100 rising by 0.21 per cent and the Nifty SmallCap100 gaining 0.12 per cent. The performance highlights investor interest across market capitalisation segments, especially in sectors linked to infrastructure and consumption.

Sectorally, buying was visible in Nifty PSU Bank, which advanced by 0.52 per cent. Nifty Metal and Nifty Auto also recorded gains of 0.44 per cent and 0.42 per cent, respectively, driven by improved sentiment following upbeat Quarterly Results and global commodity cues. However, Nifty IT declined by 0.34 per cent, reflecting weak cues from global technology stocks and earnings concerns.

Market Update at 10:30 AM: India’s equity benchmarks opened higher on Monday, after a five-week streak of losses as investor sentiment improved following weak US labour market data. The Nifty 50 index rose 0.3 per cent to 24,637.45 points, while the BSE Sensex advanced 0.27 per cent to 80,800.42 as of 9:20 a.m. IST.

The uptick comes after a volatile period driven by global macroeconomic concerns. Last week, both the Sensex and Nifty 50 declined around 1.1 per cent, their fifth consecutive weekly fall. Investor concerns were heightened after the United States imposed steep tariffs on several trading partners, including a 25 per cent duty on goods from India, raising fears about global trade disruptions and growth slowdowns.

Despite the positive open, gains across sectors remained marginal. Out of the 16 major sectoral indices, 13 traded in the green. However, the broader market remained cautious. The Nifty Smallcap and Midcap indices traded flat, reflecting limited participation from retail investors in these segments. The subdued performance in Small-Cap and Mid-Cap stocks indicates that investors are possibly awaiting further clarity on the US Federal Reserve's policy direction and upcoming domestic corporate quarterly results.

Recent US economic data added to market speculation about future monetary policy moves. Employment growth in July came in weaker than expected, with job additions falling short of forecasts. Moreover, employment numbers for the previous two months were significantly revised downward. This has increased the likelihood of a rate cut by the US Federal Reserve in its upcoming September meeting, which could support global equity sentiment in the short term.

Investors will also keep an eye on domestic triggers such as upcoming IPO announcements, dividend declarations, and bonus or right issue plans by listed companies, especially in sectors like banking, FMCG, and energy. Any positive developments on these fronts could boost investor confidence and attract renewed interest in large-cap and mid-cap stocks.

Pre-Market Update at 7:45 AM: On Friday, August 1, Gift Nifty hinted at a muted start for Indian markets. As of 7:00 AM, Gift Nifty was trading near 24,716—down 52 points from the previous close—suggesting a cautious tone for benchmark indices Nifty and Sensex.

Asian markets opened lower, tracking weakness in US stocks after a fresh wave of tariffs announced by former US President Donald Trump. On Thursday, Trump issued an executive order imposing reciprocal tariffs—35 per cent on Canadian goods, 50 per cent on Brazilian imports, 25 per cent on Indian items, 20 per cent on Taiwanese goods, and 39 per cent on products from Switzerland. Market sentiment turned wary as the global trade environment appeared to shift once again.

On July 31, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,588.91 crore—marking their ninth straight day of selling. Meanwhile, Domestic Institutional Investors (DIIs) extended their buying streak to 19 sessions, purchasing stocks worth Rs 6,372.71 crore. Timken India's quarterly results announced post-market on Wednesday will likely draw investor attention today. 

Additionally, major Q1 FY26 earnings expected on August 1 include ITC, Adani Power, Tata Power, Godrej Properties, UPL, Tube Investments, GSK Pharma, MCX, Narayana Hrudayalaya, Honeywell Automation, LIC Housing Finance, and Delhivery. These announcements could lead to stock-specific action in both large-cap and mid-cap segments.

Indian indices rebounded from intraday lows after investors interpreted the US tariff announcement as a negotiation tactic rather than a long-term hurdle. The Nifty 50 closed 0.35 per cent lower at 24,768.35, while the Sensex declined 0.36 per cent to settle at 81,185.58.

The US market ended in red—S&P 500 slipped 0.37 per cent, Nasdaq fell 0.03 per cent, and the Dow Jones dropped 0.74 per cent (330.30 points). Inflation in the US rose, with the PCE price index up 0.3 per cent in June, compared to 0.2 per cent in May. Jobless claims slightly increased, with 218,000 new filings last week.

Gold prices were flat at USD 3,288 per ounce as traders watched tariff talks closely. Crude oil saw minimal changes—U.S. crude at USD 69.36 and Brent at USD 71.84 per barrel. The US dollar index remained near the 100 mark, boosted by tariff-related developments and global uncertainty.

For today, PNB Housing remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.