RBI policy fails to inspire bulls as Nifty closes below 24,600
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Market Overview
Nifty opened flat at 24,641 and traded slightly positive for a while before turning bearish, slipping below 24,600 in the first hour. Although the index made an attempt to reclaim 24,650, it fell again sharply to test the 24,550 level. In the second half, Nifty largely consolidated between 24,560 and 24,600, eventually closing at 24,574.20, down by 0.30%.
Market sentiment remained cautious amid weak global cues, continued FII outflows, and muted earnings reactions. Investors are closely watching the ongoing US-India trade tensions, which are likely to influence near-term market direction.
Broader Market Performance:
Broader markets had a deteriorating market breadth today. Of the 3,071 stocks traded on the NSE, 844 advanced, 2,127 declined, and 100 remained unchanged.
Sectoral Performance
Nifty PSU Bank was the top gainer of the day, rising by 0.59%, followed by Nifty Bank, which edged up 0.09%. On the other hand, Nifty Pharma was the worst performer, falling sharply by 2.03%, followed by Nifty IT and Nifty Realty, which declined 1.74% and 1.51% respectively. Out of the 12 sectoral indices, only 2 ended in the green, while the remaining 10 closed in the red, reflecting broad-based weakness across the market.
Here’s the trend of FII-DII activity from the last 5 days:
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 7th August:
The maximum Call Open Interest (OI) is observed at 25,000, followed closely by 24,700, suggesting strong resistance at 24,800 - 24,900 levels.
The maximum Put Open Interest (OI) is observed at 24,600, followed closely by 24,500, suggesting strong support at 24,500 to 24,400 levels.
Note: OI is subject to multiple interpretations, but generally, an increase in Call OI indicates resistance in a falling market, and an increase in Put OI indicates support in a rising market.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you understand the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard
What’s happening in India
RBI kept the repo rate steady at 5.50% in August, maintaining a neutral stance amid easing inflation and trade tensions. GDP growth forecasts remain at 6.5% for FY26, while inflation projections were lowered to 3.1%. The Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates were also unchanged. Dive deeper
RBI’s variable rate repo and reverse-repo auctions over the past fortnight brought the weighted average call rate to 5.40%, ten basis points below the 5.50% repo rate. The measures aim to keep overnight rates within the liquidity adjustment facility corridor and aligned with policy targets. Dive deeper
The yield on India’s 10-year G-Sec approached 6.4% in August amid rising US-India trade tensions and a plunging rupee. Despite the RBI holding rates steady, low inflation and fiscal optimism contrast with foreign investors reducing exposure to Indian debt. Dive deeper
BlueStone Jewellery has set its IPO price band at ₹492-517, with subscription opening on August 11 and closing on August 13. The issue includes a fresh issue of ₹820 crore and an offer-for-sale of about 1.39 crore shares. Listing is expected on August 19, 2025, on BSE and NSE. Dive deeper
Prestige Estates reported a 26% YoY rise in Q1 FY26 net profit to Rs 292.5 crore, with revenue increasing to Rs 2,468.7 crore. Pre-sales jumped fourfold to Rs 12,126.4 crore, driven mainly by strong demand for its Ghaziabad project. Dive deeper
Lupin reported a 52% YoY rise in Q1 FY26 net profit to Rs 1,221 crore, with revenue increasing to Rs 6,164 crore. Growth was driven by strong performances in the US and Indian markets, with US sales up 24% to Rs 2,404 crore. Dive deeper
BLS International posted Q1 FY26 revenue of Rs 711 crore, up 44% YoY, with net profit rising 50% to Rs 181 crore. The company operates in over 70 countries, serving 46 client governments through its tech-enabled citizen service solutions. Dive deeper
Bharti Airtel reported Q1 FY26 net profit of Rs 5,948 crore, up 40% YoY, with revenue rising 18% to Rs 49,463 crore. Growth was driven by higher ARPU of Rs 250, strong smartphone additions, and solid performance in both India and Africa. Dive deeper
Societe Generale bought over 67 lakh Paytm shares worth Rs 720 crore as Antfin sold its 5.84% stake, ending Chinese ownership in the company. My Asian Opportunities Master Fund purchased 35 lakh shares worth Rs 374 crore. Dive deeper
RBI has given in-principle approval to IRCTC Payments Ltd., a wholly owned subsidiary of IRCTC, to operate as an online payment aggregator. The nod allows it to provide payment services to government and non-government agencies beyond IRCTC’s existing iPay platform. Dive deeper
Sebi has issued guidelines for market infrastructure institutions to handle requests for reviewing or waiving penalties. If the action was by the Member Committee, a new body with public interest directors or independent professionals will review such cases, with provisions effective 45 days from the circular date. Dive deeper
FIEO will sign an MoU with Amazon on Aug. 6 to help Indian exporters access global markets through cross-border e-commerce. A stakeholder consultation will also be held to discuss key issues, challenges, and ways to boost e-commerce exports from India. Dive deeper
NTPC Renewable Energy, a step-down arm of NTPC Ltd., has won a bid to produce 70,000 metric tonnes per annum of green ammonia under SECI’s tender, securing the supply to Krishana Phoschem Ltd. in Madhya Pradesh at Rs 51.80 per kg. Dive deeper
Gland Pharma’s Q1 net profit rose 50% YoY to ₹215.5 crore, with revenue up 7% to ₹1,505.6 crore. Growth came from all markets except the U.S., with strong gains in Europe, Canada, Australia, New Zealand, and India, aided by base business performance and a turnaround at Cenexi. Dive deeper
NHPC plans to raise around ₹20 billion through two- or three-year bonds, while NTPC Green Energy will debut in the bond market by issuing ₹20-25 billion in five-year bonds, together totaling over $500 million in debt this August. Dive deeper
Nazara Technologies’ board will meet on August 12 to consider a stock split and bonus share issue, alongside approving Q1 FY26 financial results. If approved, this will be the company’s first stock split. Dive deeper
Antfin Singapore Holding Pte. Ltd. plans to sell 18.84 crore shares of Eternal at a floor price of ₹285 per share via a block deal. The sale represents Antfin’s entire stake of about 2.1%, with shares offered at a 4% discount to the current market price and a 90-day lockup period. Dive deeper
What’s happening globally
WTI crude futures rose toward $66 per barrel, rebounding from a five-week low amid concerns over potential supply disruptions. Support came from US crude stock draws and India’s possible reduction in Russian oil imports, while gains were limited by OPEC+ plans to boost production in September. Dive deeper
Gold dipped slightly to around $3,370 per ounce but stayed near a two-week high, supported by expectations of a dovish Fed amid weak US economic data and rising tariff concerns. Dive deeper
US mortgage applications rose 3.1% in the last week of July, led by a 5.1% increase in refinance requests and a 1.5% rise in purchase applications. This rebound followed a 6bps decline in mortgage rates. Dive deeper
Taiwan’s annual inflation rose to 1.54% in July from 1.37% in June, driven by higher food prices due to Typhoon Danas and gains in education and entertainment. Seasonally adjusted consumer prices increased 0.24% in July, the fastest monthly rise in six months. Dive deeper
Germany’s factory orders fell 1.0% in June, driven by steep declines in aircraft and automotive sectors, missing expectations. While foreign demand dropped 3.0%, domestic orders rose 2.2%, and Q2 factory orders averaged a 3.1% increase. Dive deeper
OpenAI is reportedly planning a secondary stock sale, allowing current and former employees to sell shares, valuing the company at about $500 billion. Meanwhile, it is raising $40 billion in a new funding round led by SoftBank at a $300 billion valuation. Dive deeper
Apollo Global Management has agreed to acquire a majority stake in Stream Data Centers, marking its entry into the digital infrastructure sector. The deal, expected to close this year, will allow Apollo-managed funds to invest billions in data centers amid rising AI-driven demand. Dive deeper
Disney’s ESPN will acquire NFL media assets, including the NFL Network, with the NFL taking a 10% equity stake. The deal, valued at $2-3 billion, will boost ESPN’s streaming service pending regulatory approval. Dive deeper
Honda’s Q1 operating profit fell 50% to 244.2 billion yen due to US tariffs and a stronger yen. The full-year operating profit forecast was raised to 700 billion yen, with tariff impact expected at 450 billion yen. The company anticipates a reduced US tariff rate starting in September. Dive deeper
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
Sanjay Malhotra, Governor, Reserve Bank of India (RBI), on monetary policy and economy
“Combined with supportive government and RBI policies, this situation bodes well for the Indian economy in the near term.”
“The coordinated use of various tools available to us has helped accelerate monetary policy transmission in the current easing cycle.”
“Core inflation, on the other hand, has remained steady around the 4 per cent mark, as anticipated. Inflation is projected to go up from the last quarter of this financial year.”
“Growth is robust and as per earlier projections, though below our aspirations. The uncertainties of tariffs are still evolving. Monetary policy transmission is continuing. The impact of the 100 bps rate cut since February 2025 on the economy is still unfolding.”
“On balance, therefore, the current macroeconomic conditions, outlook, and uncertainties call for continuation of the policy repo rate of 5.5 per cent and wait for further transmission of the front-loaded rate cut to the credit markets and the broader economy.”
“The MPC further resolved to maintain a close vigil on the incoming data and the evolving domestic growth-inflation dynamics to chart out the appropriate monetary policy path.” - Link
Anish Shah, Group CEO & MD, Mahindra & Mahindra, on ESOP for employees
“This is something that I am very happy about and very proud about our company’s culture because these ESOPs are for every single person in the company. This is effectively a token of gratitude, because their efforts have helped us do extremely well.”
“The total disbursement for 23,000 employees of M&M, MEAL, and the last mile mobility vertical would be in the range of Rs 400-500 crore, depending on factors.”
“It (Rs 400 crore to Rs 500 crore) is a very significant amount, but as I look at it, overall, the value creation they (workers) have led is a lot more.” - Link
White House official on Apple’s manufacturing pledge
“Apple Inc. will announce a domestic manufacturing pledge of $100 billion on Wednesday that will focus on bringing more manufacturing to the United States.”
“The pledge would be a new financial commitment on top of what Apple has already pledged.”
Kevin Hassett, White House National Economic Adviser
“They’re moving here in droves. This is trillions and trillions of dollars of commitments for people to build new factories here. In fact, you’re likely to see one today from Apple.” - Link
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Calendars
In the coming days, we have the following significant events and corporate actions:
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Has anyone noticed change in interface , good job zerodha