GIFT Nifty suggests flat start for equities ahead of RBI's monetary policy announcement
GIFT Nifty:
The GIFT August 2026 futures currently traded 23.00 points lower, suggesting a flat opening for the benchmark index today.
The primary domestic focus for today is the Reserve Bank of India?s (RBI) Monetary Policy Committee decision. After a three-day meeting, the central bank is expected to announce its stance on interest rates.
Investors will be listening closely to the RBI Governor?s commentary on liquidity, currency movements, economic growth, and the inflation outlook. Retail inflation, which stood at 4.38% in June, remains a metric that the central bank watches carefully to ensure it stays within the target range.
Institutional Flows:
Foreign portfolio investors (FPIs) bought shares worth Rs 2,446.47 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 936.14 crore in the Indian equity market on 04 August 2026, provisional data showed.
The FIIs have bought shares worth Rs 3,368.73 crore so far in August (till 04 August 2026). This follows their cash sales of Rs 5,778.99 crore in July, Rs 49,028.63 crore in June and Rs 55,963.33 crore in May.
Global Markets:
Asian stock markets jumped on Wednesday as strong earnings and a resurgence of demand for tech lifted Wall Street to record peaks.
The investor sentiment was further supported by an ongoing slide in oil prices as Qatar said mediators were making progress in efforts to end the U.S.-Iran war, though details were lacking.
Brent crude eased 0.4% to $79.02 a barrel, a long way from its July top of $102, while U.S. crude dropped 0.5% to $75.35.
The pullback in oil provided some relief from inflation fears and boosted bonds globally, with 10-year Treasury yields now at 4.6187%, down from last week's high of 4.747%.
Markets also sharply pared the probability of a September rate hike from the Federal Reserve to 57% from 67%.
Fed Bank of Kansas City President Jeff Schmid, however, used a speech on Tuesday to call for tighter policy to help bring inflation back to the central bank's 2% target.
Overnight in the US, the S&P 500 and the Dow closed at record highs on Tuesday, powered by the latest batch of earnings from AI-related companies such as Caterpillar and Palantir that assuaged demand concerns.
The Dow Jones Industrial Average rose 907.47 points, or 1.71%, to 54,085.88, the S&P 500 gained 136.02 points, or 1.79%, to 7,736.52 and the Nasdaq Composite gained 671.10 points, or 2.59%, to 26,584.99.
Palantir Technologies soared 29.5% and recorded its biggest daily percentage gain since February 2024, after raising its annual revenue forecast.
Caterpillar, seen as a bellwether for the global industrial economy, jumped 5.6% after raising its annual revenue growth forecast, as the buildout of AI data centers has fueled demand for its power-generation and construction equipment.
Investors have been closely monitoring results from AI-linked companies this earnings season for any signs the massive spending in the space will be justified.
Domestic Market:
The benchmark indices ended lower on Tuesday, snapping a four-session winning streak as investors booked profits ahead of the Reserve Bank of India's monetary policy decision due on Wednesday.
Sentiment remained cautious amid the weekly expiry of Nifty 50 derivatives contracts and increased volatility following the rollout of the NSE's new Closing Auction Session (CAS).
The Nifty settled below the 24,650 mark. Oil & gas and FMCG stocks led the decline, while metal and media shares bucked the trend.
Technically, the 24,750-24,780 zone remains the key resistance for the Nifty, while the 24,460-24,430 zone is expected to provide immediate support.
The S&P BSE Sensex declined 210.08 points or 0.27% to 78,428.95. The Nifty 50 index fell 159.40 points or 0.64% to 24,614.90. In the past four trading sessions, the Sensex jumped 2.44% and Nifty climbed 3.29%.
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