Sensex jumps 271 pts; realty shares advance

The key equity benchmarks traded with minor gains in mid-morning trade after the Reserve Bank of India (RBI) kept the policy repo rate unchanged at 5.25% and retained its 'neutral' stance, in line with expectations. The RBI raised its FY27 GDP growth forecast to 6.7% from 6.6% and lowered its FY27 CPI inflation projection to 5% from 5.1% earlier. The central bank projected core inflation at 4.3% for FY27, while Q3 CPI inflation was estimated at 5.9%. The Nifty traded above the 24,600 level, while realty shares advanced after declining in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 270.86 points or 0.35% to 78,699.81. The Nifty 50 index rose 7.65 points or 0.03% to 24,605.35.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index added 0.41% and the BSE 250 SmallCap Index rose 0.77%.

The market breadth was positive. On the BSE, 2,308 shares rose and 1,518 shares fell. A total of 207 shares were unchanged.

RBI MPC meeting:

The Reserve Bank of India (RBI), at its monetary policy meeting held from 3 August to 5 August 2026, kept the policy repo rate unchanged at 5.25% and retained its 'neutral' policy stance. RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously voted to leave the benchmark policy rate unchanged.

The MPC raised its FY27 GDP growth forecast to 6.7% from 6.6% earlier. It projected FY27 CPI inflation at 5%, 10 basis points lower than the previous estimate, while core inflation was expected to average 4.3% during the year. Quarterly CPI inflation projections were placed at 5.3% for Q1, 4.7% for Q2, 5.9% for Q3 and 5.5% for Q4.

Malhotra said the impact of El Nino on the temporal and spatial distribution of rainfall remained a key risk to the inflation outlook. He added that global crude oil prices continued to witness sharp volatility due to geopolitical developments, clouding the near-term inflation trajectory. While underlying inflationary pressures remained contained, the risk of second-round effects from higher food, fuel and other input costs feeding into broader inflation persisted.

The MPC's decision came amid a challenging macroeconomic environment, with the lingering impact of the US-Iran conflict on domestic growth and inflation. However, easing crude oil prices and hopes of a peace deal improved market sentiment.

Initial Public Offer (IPO):

Ardee Industries received bids for 3,49,62,863 shares as against 5,84,22,516 shares on offer, according to stock exchange data at 11:28 IST on 05 August 2026. The issue was subscribed 0.60 times.

The issue opened for bidding on 05 August 2026 and will close on 07 August 2026. The price band of the IPO is fixed between Rs 50 and 53 per share. An investor can bid for a minimum of 281 equity shares and multiples thereof.

Buzzing Index:

The Nifty Realty index rose 2.12% to 910.10. The index jumped 2.42% in the past trading session.

Godrej Properties (up 4.02%), DLF (up 3.05%), Prestige Estates Projects (up 2.52%), Lodha Developers (up 2.4%), Oberoi Realty (up 2.07%), Sobha (up 1.38%), Aditya Birla Real Estate (up 1.18%), Phoenix Mills (up 1.1%), Anant Raj (up 0.33%) rose.

Godrej Properties rose 4.02%. The company reported a consolidated net profit of Rs 350.10 crore for the first quarter ended 30 June 2026, marking a 41.66% decline from Rs 600.12 crore recorded in the corresponding quarter of the previous fiscal. The company's total income fell 16.99% YoY to Rs 1,345.04 crore during the quarter, while profit before tax (PBT) declined 44.25% to Rs 479.71 crore.

Stocks in Spotlight:

NHPC fell 1.64%. The company reported a 2.89% increase in consolidated net profit to Rs 1,095.87 crore on an 18.49% rise in revenue from operations to Rs 3,808.31 crore in Q1 FY27 compared with Q1 FY26.

Global Markets:

Asian 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.

Powered by Capital Market - Live News