NIFTY SLIPS BELOW 24,650 AMID RBI CAUTION, WEEKLY EXPIRY VOLATILITY

Published on Aug 04, 2026 16:57

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%.

Grasim Industries (down 3.74%), Reliance Industries (down 2.13%) and HDFC Bank (down 1.46%)

The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 0.03% and the BSE 250 SmallCap Index added 0.27%.

The market breadth was negative. On the BSE, 2,108 shares rose and 2,128 shares fell. A total of 203 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 1.86% to 12.15.

RBI MPC meeting:

The Reserve Bank of India`s (RBI) three-day Monetary Policy Committee (MPC) meeting entered its second day on Tuesday, 4 August 2026. RBI Governor Sanjay Malhotra is scheduled to announce the policy decision on Wednesday, 5 August 2026. Market participants closely monitored the central bank`s commentary on inflation, economic growth and the outlook for interest rates.

Numbers to Track:

In the commodities market, Brent crude for September 2026 settlement jumped $1.91 or 2.28% to $85.68 a barrel.

The yield on India`s 10-year benchmark federal paper shed 0.06% to 6.829 compared with the previous session close of 6.833.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 95.3300 compared with its close of 95.3700 during the previous trading session.

MCX Gold futures for 5 October 2026 settlement jumped 0.55% to Rs 1,43,724.

The US Dollar Index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 99.85.

The United States 10-year bond yield rose 0.21% to 4.694.

Global Markets:

The Dow Jones futures rose 330 points, signalling a positive opening for Wall Street.

European shares traded higher on Tuesday as signs of renewed diplomatic engagement between Washington and Tehran lifted investor sentiment, although lingering differences over the Gaza peace framework kept geopolitical risks in focus.

Asian shares ended mostly higher, tracking overnight gains on Wall Street. However, investors remained cautious amid geopolitical tensions in West Asia and concerns over the sustainability of the AI-led market rally.

Oil prices edged higher in Asian trade. The rebound came after prices hit a three-week low on Monday when US President Donald Trump said he had called off a planned attack on Iran as a goodwill gesture to support peace efforts. However, Tehran has denied that any negotiations are under way.

Markets continue to price in the possibility of another US Federal Reserve rate hike in September. According to CME Group`s FedWatch Tool, Fed funds futures imply a 65% probability of a 25-basis-point increase at the central bank`s policy meeting ending on 16 September.

New York Federal Reserve President John Williams reportedly said he remains optimistic that inflation will continue to ease gradually, but reiterated that the Fed is prepared to raise interest rates further if inflation does not slow as expected.

On Wall Street, the Dow Jones Industrial Average closed at a record high after data showed US manufacturing activity expanded to its strongest level in more than four years. The Dow gained 693.38 points, or 1.32%, to 53,178.41. The S&P 500 advanced 1.48% to 7,600.50, while the Nasdaq Composite jumped 2.13% to 25,913.90.

Investors will now turn their focus to key US labour market data due later this week, culminating in the July non-farm payrolls report on Friday.

Stocks in Spotlight:

Life Insurance Corporation of India (LIC) fell 8.68% after the Government of India launched an offer for sale (OFS) to pare its stake in the state-owned insurer. The President of India, acting through the Department of Financial Services, Ministry of Finance, is offering up to 31,62,49,885 equity shares (2.50% equity) in the base issue through the stock exchange mechanism. The government has also retained an oversubscription option to sell up to an additional 50,59,99,816 shares (4% equity), taking the total offer size to 82,22,49,701 shares (6.50% equity).

The floor price for the OFS has been fixed at Rs 382 per share, representing a discount of 10.85% to LIC`s previous closing price of Rs 428.50 on the NSE. As of 15:30 a.m. on Tuesday, the non-retail portion had received bids for 94,45,44,898 shares, translating into a subscription of 331.86% of the base non-retail offer. The indicative price stood at Rs 383.84 per share.

Ather Energy jumped 14.25% after the electric two-wheeler maker reported a sharp improvement in its Q1 FY27 financial performance. On a consolidated basis, the company`s net loss narrowed to Rs 51.09 crore in Q1 FY27 from Rs 178.23 crore in Q1 FY26 and Rs 100.23 crore in Q4 FY26. Revenue from operations surged 88.8% YoY and 3.6% QoQ to Rs 1,216.92 crore in the quarter ended 30 June 2026.

Great Eastern Shipping Company jumped 2.47% after the company reported a sharp rise in consolidated earnings for the quarter ended 30 June 2026, driven by robust growth in its shipping business. The company posted a consolidated net profit of Rs 1,308.84 crore in Q1 FY27, registering a 159.43% year-on-year (YoY) increase from the corresponding quarter last year. Revenue from operations surged 66.91% YoY to Rs 2,005.36 crore.

Restaurant Brands Asia hit an upper limit of 20% after reporting a sharp improvement in operating performance for Q1 FY27. The company reported a consolidated net loss of Rs 33 crore in Q1 FY27, narrowing from a loss of Rs 45.40 crore in Q1 FY26. Revenue from operations increased 17.9% YoY to Rs 822.60 crore in the quarter ended 30 June 2026.

Best Agrolife zoomed 19.96% after the company�s consolidated net profit surged 104.07% to Rs 40.65 crore on 3.92% increase in revenue from operations to Rs 396.2 crore in Q1 FY27 over Q1 FY26.

Kalpataru declined 5.72% after the real estate developer reported a consolidated net loss of Rs 26.52 crore for the quarter ended 30 June 2026, compared with a net loss of Rs 49.42 crore in the corresponding quarter last year. Revenue from operations rose 6.54% year-on-year to Rs 472.20 crore in Q1 FY27.

Dee Development Engineers hit the lower circuit of 5% after the company reported a 41.89% quarter-on-quarter decline in consolidated net profit to Rs 16.08 crore in Q1 FY27 from Rs 27.68 crore in Q4 FY26. Revenue from operations declined 18.57% quarter on quarter to Rs 294.46 crore in Q1 FY27 from Rs 361.57 crore in the previous quarter.

Hubtown fell 1.84%. The company reported a 68.56% year-on-year (YoY) decline in consolidated net profit to Rs 24.92 crore in Q1 FY27, compared with Rs 79.28 crore in the corresponding quarter last year. Revenue from operations declined 16.96% YoY to Rs 155.62 crore in the quarter ended 30 June 2026.

Texmaco Rail & Engineering declined 3.76%. The company reported a 70.57% year-on-year (YoY) increase in consolidated net profit to Rs 50.03 crore in Q1 FY27, compared with Rs 29.33 crore in the corresponding quarter last year. Revenue from operations, however, declined 16.90% YoY to Rs 756.68 crore in the quarter ended 30 June 2026.

RITES fell 1.55%. The company reported a 7.58% year-on-year (YoY) increase in consolidated net profit to Rs 97.78 crore in Q1 FY27, compared with Rs 90.89 crore in the corresponding quarter last year. Revenue from operations rose 8.67% YoY to Rs 532.20 crore in the quarter ended 30 June 2026 from Rs 489.70 crore in Q1 FY26.