Indian markets start the week on a positive note as Sensex hovers near 80,750 and Nifty trades around 24,630
The Indian stock market opens the new trading week with a cautious but positive start. After weeks of selling pressure and volatile swings, the Sensex and Nifty record mild gains as investors react to global economic developments, domestic corporate earnings, and anticipation of the Reserve Bank of India’s policy meeting.
Market Opening and Current Performance
On August 4, 2025, the Nifty 50 rises around 0.28% to trade near 24,632, while the BSE Sensex edges up by about 0.18%, hovering close to 80,750 in the early session. This rebound comes after five consecutive weeks of market losses triggered by foreign investor outflows and global trade concerns.
Mid-cap and small-cap indices also start the day in positive territory, although their gains remain limited. The cautious tone reflects the market’s attempt to stabilize after a turbulent July, during which fears of US tariffs and weak global demand weighed heavily on investor sentiment.
Factors Driving Today’s Market
The primary factor influencing today’s market movement is the global trade environment. Recently, the United States announced 25% tariffs on certain Indian exports, sparking concerns about a slowdown in trade-related sectors. While this initially created selling pressure last week, today’s session sees some relief as traders absorb the impact and focus on domestic cues.
Another significant influence is the US employment report for July, which shows weaker-than-expected job growth. This report increases expectations that the US Federal Reserve may cut interest rates in September, potentially easing the pressure on global liquidity and attracting foreign capital back to emerging markets like India.
On the domestic front, attention shifts to the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, which begins today. Analysts expect the RBI to maintain its policy rates while keeping a close eye on inflation trends and capital flows. Any dovish signals from the central bank could provide a near-term boost to market sentiment.
Sector Performance: Auto and Metals Shine
Auto and metal stocks lead today’s market recovery.
Automobiles gain over 1%, driven by positive quarterly earnings from companies such as TVS Motor and Hero MotoCorp. Strong domestic sales during the previous quarter reflect improving consumer sentiment and the beginning of the festive season build-up.
Metal stocks rise by roughly 1.6% as a weaker US dollar lifts global commodity prices, benefiting companies like Tata Steel, JSW Steel, and Hindalco.
On the other hand, information technology stocks experience mild pressure, falling around 0.4%. Global trade uncertainty and weaker US demand raise concerns about near-term earnings for software exporters such as Infosys and TCS.
Major Stock Movers Today
Several companies see significant price action following their quarterly earnings reports and corporate announcements:
Delhivery surges nearly 5% after reporting a 68% year-on-year rise in net profit for the first quarter, signaling strong growth in India’s logistics sector.
MCX (Multi Commodity Exchange of India) jumps about 4% after posting robust Q1 earnings, supported by higher trading volumes in gold and energy commodities.
Federal Bank slips more than 5% after releasing a weaker-than-expected profit report, raising concerns about rising credit costs and slower loan growth.
UPL, a major agrochemical firm, rallies 7% as it reports a sharp reduction in quarterly losses, suggesting an improving demand environment.
PC Jeweller gains over 6% after announcing a plan to become debt-free by the end of this fiscal year, boosting investor confidence in its financial restructuring.
ABB India falls around 3.7% following muted quarterly results, with margins under pressure due to rising input costs.
IPO Market Activity Remains Strong
The primary market continues to attract attention, even as the secondary market faces volatility. Indian companies raised nearly Rs. 3,500 crore in Q1 FY26, with Gujarat leading in IPO listings and Delhi topping in funds raised.
Foreign portfolio investors also show keen interest in new public offerings, with over $1.7 billion flowing into IPOs in July 2025. This highlights a contrast: while foreign investors withdraw from secondary markets due to global uncertainty, they remain eager to participate in promising new listings.
India maintains its strong position in the global IPO landscape, raising $6.7 billion in the first half of 2025, marking a 25% increase over last year. Upcoming IPOs from PhonePe, Meesho, Groww, and Lenskart are expected to sustain this momentum, keeping investor enthusiasm alive in the primary market.
Macroeconomic Environment and FII Activity
The broader market continues to deal with the pressure of foreign institutional investor (FII) outflows, which have exceeded $11 billion in 2025 so far. These outflows are largely driven by global rate fluctuations and concerns about trade disruptions due to tariffs.
The RBI’s policy meeting is now in focus as markets look for signals that could stabilize the rupee and attract fresh inflows. While inflation has moderated, the central bank is likely to tread carefully, balancing growth support with currency stability.
Additionally, discussions on Goods and Services Tax (GST) rationalization could influence long-term earnings for consumer and manufacturing companies. Any favorable reforms could improve business sentiment and provide a structural boost to the stock market.
Technical Outlook for Nifty and Sensex
Market analysts note that Nifty faces strong resistance between 24,820 and 24,950, while the immediate support zone lies between 24,530 and 24,400. A sustained close above 24,500 is necessary to prevent a slide toward 24,000 or even 23,800.
Volatility is expected to remain elevated throughout the week. Analysts suggest that August 8, 2025, could be a critical date for trend confirmation, with potential for larger moves depending on global and domestic triggers. Traders are advised to stay defensive, focus on quality stocks, and avoid over-leveraged positions until a clear direction emerges.
Outlook for the Week Ahead
The coming week is likely to see high market volatility as traders watch for updates on US trade policies, RBI policy decisions, and the ongoing earnings season.
Auto and metal stocks are expected to remain in focus if commodity prices and domestic demand stay supportive.
IT and export-oriented sectors may remain under pressure if global uncertainties persist.
Primary market activity and domestic policy developments could provide selective opportunities for investors with a medium-term view.
For now, the Indian stock market enters the week on a cautious yet positive note, balancing global risks with domestic resilience. A clear breakout above resistance levels could invite more participation, while any negative news from global markets could trigger renewed selling pressure.