Equities Snap Five-Session Winning Streak Ahead of RBI Policy

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

India stocks fall, rupee fall

By Tresha Dias

August 4, 2026 at 1:00 PM IST

Indian equities ended their five-session rise on Tuesday as investors turned cautious ahead of the Reserve Bank of India's monetary policy decision, with profit-taking in realty, oil & gas and FMCG stocks outweighing gains in metals and media. The Sensex fell 210.08 points, or 0.27%, to 78,428.95, while the Nifty50 declined 159.40 points, or 0.64%, to 24,614.90, slipping below the 24,650 mark.

Despite the decline in benchmark indices, the broader market remained resilient. The BSE MidCap 150 and SmallCap 250 indices rose 0.03% and 0.27%, respectively, while market breadth stayed positive, indicating buying interest in select mid- and small-cap shares. The India VIX rose 1.86% to 12.15, reflecting slightly higher caution ahead of the RBI's policy announcement.

The Indian rupee ended nearly unchanged at 95.3775 per dollar today as portfolio inflows and foreign banks' dollar sales offset importer hedging demand, while caution ahead of the Reserve Bank of India's monetary policy decision kept the currency in a narrow range. Traders said dollar sales by foreign banks, likely linked to equity fundraisings, were met by hedging demand from oil companies and gold importers.

Brent crude rose 1.47% to around $85 a barrel as trading resumed in Asia, recovering modestly after hitting a three-week low on Monday. Prices remained volatile after US President Donald Trump said he had halted a planned strike on Iran to allow peace talks, although Tehran denied any negotiations were taking place.

The yield on the benchmark 6.94%, 2036 government bond ended at 6.8152%, up from the day’s low of 6.8145%, as against 6.8343% on Monday. Public sector banks continued to buy gilts with the view that the 6.82%-6.84% yield range on the benchmark 10-year bond was an attractive entry point.

Top Movers of the Day

Ather Energy surged 14.25% to ₹1,454, after reporting strong Q1 FY27 results. Revenue jumped 89% year-on-year, net losses narrowed 71%, and the company posted its first-ever positive operational EBITDA, lifting the stock to a record high during the session.

KEI Industries jumped 9.49% to ₹5,500, after the company reported its Q1 FY27 net profit rose 40% and revenue increased 23%, supported by robust domestic demand for cables and wires.

Graphite India rallied 7.45% to ₹707, after reporting consolidated net profit of ₹1.71 billion for Q1 FY27, up from ₹1.34 billion a year earlier, driven by healthy domestic demand.

CG Power and Industrial Solutions gained 6.69% to ₹881.35, as investors welcomed quarterly earnings despite sequential moderation. The company reported revenue of ₹32.81 billion and net profit of ₹3.08 billion for the June quarter.

Saregama India advanced 6.09% to 545.50 rupees, after posting more than 40% year-on-year growth in net profit and a 27% rise in revenue, led by strong performance in its music and live events businesses.

SAIL rose 5.25% to ₹173.66, supported by strong June-quarter earnings, a sharp improvement in EBITDA, and positive sentiment across metal stocks.

Apar Industries climbed 5.12% to ₹15,501, as its Q1 FY27 net profit surged 77.7% year-on-year to ₹4.67 billion, while revenue rose 29.1% to ₹65.91 billion, driven by strong global demand for power infrastructure products.

Syrma SGS Technology gained 4.29% to ₹1,419, after June-quarter net profit more than doubled and revenue jumped 67%, reinforcing confidence in the company's growth outlook.

LIC Housing Finance fell 1.16% to ₹513, after reporting weaker-than-expected margins. Investors reacted to lower net interest margins of 2.58%, reduced FY27 loan growth guidance of 8-10%, and modest assets under management growth.

Jain Resource Recycling tumbled 7.68% to ₹323.30, after weak sequential earnings, contraction in EBITDA margins and the resignation of an independent director following a recent factory accident.

UPL declined 6.15% to ₹581.90, after CEO Mike Frank stepped down and Group Chairman Jai Shroff assumed direct oversight of the global crop protection business. The stock was also pressured by a target price cut from Jefferies.

Futures & Options
The Nifty August 2026 futures settled at 24,552.30, a 62.6-point discount to the Nifty 50 cash index, which closed at 24,614.90. The Nifty 50 fell 159.40 points, or 0.64%, in the cash market. The NSE's India VIX, which measures expected near-term market volatility, rose 1.86% to 12.15.

Life Insurance Corporation of India, HDFC Bank and Infosys were the most-traded single-stock futures in the NSE's derivatives segment. The August 2026 derivatives contracts expire on 25 August 2026.

Bonds
The 10-year benchmark 6.94%, 2036 bond ended at 100.87 rupees, up from 100.73 rupees on Monday. The yield on the bond ended at 6.8152%, up from the day’s low of 6.8145%, as against 6.8343% on Monday. Public sector banks continued to buy gilts with the view that the 6.82%-6.84% yield range on the benchmark 10-year bond was an attractive entry point.

With Brent crude oil trading at $85 per barrel, traders trimmed their exposure on gilts ahead of the RBI’s Monetary Policy Committee decision. Traders also picked up shorter tenure bonds on expectations that yields on these bonds will remain supported, despite external pressures, on account of strong FCNR(B) flows.

Forex
The Indian rupee ended nearly unchanged at 95.3775 per dollar today as portfolio inflows and foreign banks' dollar sales offset importer hedging demand, while caution ahead of the Reserve Bank of India's monetary policy decision kept the currency in a narrow range. Traders said dollar sales by foreign banks, likely linked to equity fundraisings, were met by hedging demand from oil companies and gold importers.

Attention has now shifted to the RBI's policy decision due on Wednesday, with economists polled by Reuters expecting the central bank to leave interest rates unchanged while signalling a slightly more hawkish stance amid lingering inflation risks. Meanwhile, improving banking system rupee liquidity weighed on dollar-rupee forward premiums, pushing both near- and long-tenor premiums lower.

Crypto
The cryptocurrency market traded higher today, with Bitcoin and Ethereum advancing despite persistent concerns over ETF flows, custody risks and the outlook for US interest rates.

Bitcoin traded near $63,812.96 today, up 1.73% over the past 24 hours, shrugging off a choppy start to August. The cryptocurrency's market capitalisation stood at about $1.28 trillion, while 24-hour trading volume reached $26.81 billion. Although US spot Bitcoin ETFs recorded net outflows of $61.53 million, Bitcoin remained resilient as investors assessed the impact of a firmware flaw linked to Coldcard wallets and awaited Friday's US jobs report for fresh direction.

Ethereum traded near $1,864.34 today, up 0.53% over the past 24 hours. The second-largest cryptocurrency's market capitalisation stood at $224.99 billion, while 24-hour trading volume reached $8.03 billion. Investors continued to monitor Federal Reserve policy expectations and broader market sentiment as Ethereum tracked gains across major digital assets.

US Stock Futures
US stock futures edged higher today as investors awaited another round of corporate earnings, while oil prices rebounded. Dow futures rose 34 points, or nearly 0.1%, S&P 500 futures gained around 0.1% and Nasdaq-100 futures advanced 0.41%.

Palantir surged more than 17% in pre-market trading after the artificial intelligence and data analytics company reported stronger-than-expected quarterly earnings, with revenue rising 93% year-on-year. Investors also looked ahead to earnings from Caterpillar and McDonald's later in the day.

US Treasury
US Treasury note yields were little changed today, with the benchmark 10-year yield holding around 4.69% as investors assessed the outlook for Federal Reserve monetary policy amid heightened geopolitical tensions in West Asia. The five-year note yield rose 3 basis points to 4.42%, while markets continued to price in a 65% probability of a 25-basis-point rate hike in September following the central bank's decision to leave interest rates unchanged in July.

Although three Federal Open Market Committee members dissented in favour of a rate hike at the July meeting, Federal Reserve Chair Kevin Warsh provided little guidance on the future path of interest rates. New York Federal Reserve President John Williams said monetary policy remained well positioned and that inflation was expected to ease in the second half of the year. Investors also awaited the latest JOLTS job openings report and US trade data for fresh signals on the strength of the economy.

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