Barometers ends with decent gains; broader mkt outperforms

The headline equity benchmarks ended with modest gains today, snapping a two-day losing streak, as investor sentiment was lifted by ongoing Q1 earnings and the commencement of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, which is set to conclude on August 6. The Nifty settled above the 24,700 level.

In the barometer index, the S&P BSE Sensex, advanced 418.81 points or 0.52% to 81,018.72. The Nifty 50 index gained 157.40 points or 0.64% to 24,722.75.

The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index added 1.11% and the S&P BSE Small-Cap index rose 0.76%. The market breadth was positive.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.06% to 11.97.

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.

Among the sectoral indices, the Nifty Metal index (up 2.48%), the Nifty Auto index (up 1.61%) and the Nifty IT index (up 1.60%) outperformed the Nifty 50 index.

Meanwhile, the Nifty FMCG index (down 0.10%), the Nifty Financial services index (down 0.06%) and the Nifty Bank index flat and underperformed the Nifty 50 index.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.63% to 6.331 from the previous close of 6.371.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 87.7350 compared with its close of 87.1850 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement advanced 0.79% to Rs 1,00,539.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 98.69.

The United States 10-year bond yield added 0.07% to 4.233.

In the commodities market, Brent crude for Oct 2025 settlement lost $1.14 or 1.64% to $68.54 a barrel.

Global Markets:

European markets traded higher on Monday, kicking off the new week on a positive note as investors continued to digest the Trump administration's volatile trade negotiations and the evolving global growth outlook.

Asian shares ended mixed as investors assessed the latest round of tariffs that have been levied by the U.S. on its trading partners. These tariffs have raised concerns over mounting inflation and could also possibly lead to an economic slowdown.

Movements in crude oil prices will be closely watched after OPEC+ announced a significant output hike. On Sunday, the bloc agreed to raise production by 547,000 barrels per day for September'the latest in a series of accelerated increases aimed at regaining market share.

The decision comes amid concerns over potential supply disruptions related to Russia, with OPEC+ citing a healthy global economy and low inventories as key factors behind the move.

On Wall Street, major equity indices ended lower on Friday as a weaker-than-expected jobs report, combined with fresh U.S. tariffs on dozens of trading partners, fueled concerns that the American economy might be slowing down significantly.

The S&P 500 slipped 1.6% to close at 6,238.01, while the Nasdaq Composite pulled back 2.24% to 20,650.13. The Dow Jones Industrial Average fell 542.40 points, or 1.23%, to finish the session at 43,588.58.

Data released by the Labor Department on Friday showed that the US nonfarm payrolls rose by 73,000 in July 2025, well below expectations of 110,000. The revised figures for May and June showed that employment was cumulatively lower by 258,000 than previously reported, suggesting the labor market may be cooling more rapidly than initially anticipated.

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