Benchmarks trade in positive terrain; PSU Bank shares jump

The key equity indices traded with modest gains in early afternoon trade. Market participants will closely monitor tariff developments and upcoming RBI's policy outcome. The Nifty traded above the 24,650 mark.

PSU Bank shares advanced after declining in the past three trading sessions.

At 12:25 IST, the barometer index, the S&P BSE Sensex advanced 300.75 points or 0.37% to 80,900.53. The Nifty 50 index gained 113.60 points or 0.47% to 24,680.40.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index added 0.59% and the S&P BSE Small-Cap index rose 0.31%.

The market breadth was positive. On the BSE, 2,069 shares rose and 1,849 shares fell. A total of 206 shares were unchanged.

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) commenced its meeting today, 4 August 2025, and is scheduled to announce its decision on the key interest rate on 6 August. The RBI had unexpectedly lowered its key repo rate by 50 bps to 5.50% at its May meeting'larger than market expectations of a 25 bps reduction'while shifting its policy stance from accommodative to neutral. The move brought total rate cuts to 100 bps since February, pushing borrowing costs to their lowest level since August 2022.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 4.30% to 11.69. The Nifty 31 July 2025 futures were trading at 24,748 at a premium of 67.6 points as compared with the spot at 24,680.40.

The Nifty option chain for the 28 August 2025 expiry showed a maximum call OI of 57.1 lakh contracts at the 26,000 strike price. Maximum put OI of 38.6 lakh contracts was seen at 24,000 strike price.

Buzzing Index:

The Nifty PSU Bank index rose 0.54% to 6,809.95. The index dropped 2.59% in the past three consecutive trading sessions.

Indian Bank (up 1.77%), Bank of Baroda (up 1.42%), Bank of India (up 1.3%), Canara Bank (up 1.04%) and Punjab National Bank (up 0.73%), UCO Bank (up 0.62%), Punjab & Sind Bank (up 0.42%), Bank of Maharashtra (up 0.18%), Union Bank of India (up 0.11%) and Indian Overseas Bank (up 0.08%) advanced.

Stock in Spotlight:

Shakti Pumps India tanked 7.39% after the company's consolidated net profit declined 12.15% to Rs 96.83 crore in Q1 FY26 as against Rs 110.23 crore posted in Q4 FY25. Revenue from operations decreased 6.43% to Rs 622.50 crore in Q1 FY26 as against Rs 665.32 crore reported in Q4 FY25.

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