More Stories

Informist, Wednesday, Aug. 5, 2026

By Gopika Balasubramanium

MUMBAI – Analysts continued to be bullish on the Indian market with the June quarter results being better than expected, a largely stable rupee, lower crude oil prices, and early signs of foreign investors returning. However, the eleventh hour spike in the indices after the closing auction and the divergence in the movement of indices will be closely watched. There has been sharp volatility in the market during the last hour of trade, likely on the back of thin liquidity and a demand-supply mismatch. The participation of retail investors was very low, analysts said.

"While inflation has inched above the target due to food and fuel prices, price pressures have not become broad-based, and the RBI expects inflation to peak in Q3 FY27 (December quarter) before gradually easing," the head of equity strategy at a British bank said. "The favourable progress of the monsoon is encouraging and should help contain food inflation in the coming months. Given the improving inflation outlook, we do not expect the RBI to consider a rate hike in the near term. The key risk to this view would be a hawkish shift by the US Federal Reserve if US inflation remains persistently elevated," the equity strategist said.

Wednesday, the Reserve Bank of India's Monetary Policy Committee unanimously decided to hold the repo rate at 5.25%, in line with expectations. The central banks of the US, the UK, and Japan, which kept their interest rates unchanged last week, had some members dissent. However, the market is expecting an RBI repo rate hike by the end of 2026 or by March if the situation worsens from here, especially in terms of the rupee and current account deficit.  

The Nifty 50 index ended at 24624.65 points, up 9.75 points. This was, however, only 54.45 points away from 24570.20 points when the continuous session ended. The disparity between these levels of the Nifty 50 has narrowed. Monday, the difference was 200 points, which came down to 150 points Tuesday. The BSE Sensex ended at 78581 points, up 152.05 points or 0.2%. The disparity between the movement of these two indices was evident throughout the session. The Nifty 50 index was in the red, as investors exited positions, while the BSE Sensex was largely in the green. However, towards the end, both indices ended higher.

"The near-term trend of Nifty (50) remains positive," Nagraj Shetti, senior technical analyst at HDFC Securities, said in a note. "Any upside from here could find overhead resistance around 24800 levels. However, further weakness from here could find support around 24400-24300 levels for a bounce back," he added. Investors will also continue to monitor developments in West Asia after US President Donald Trump said the Strait of Hormuz would reopen soon and the country will strike Iran if disruptions in the Strait persist.  End

Edited by Shubhayan Bhattacharya

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.