On Wednesday, August 6, Gift Nifty is indicating a cautious start for the benchmark Nifty ahead of the RBI monetary policy.
As of 7:14 AM, the GIFT Nifty was trading near the 24,679 mark, down 25 points from its previous close.
The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) will conclude its three-day meeting with a policy decision today.
Markets widely expect the central bank to keep interest rates unchanged at 5.50%. However, the MPC’s comments will be closely watched for signals on what might come next.
In a major development, US President Donald Trump’s announcement of new tariffs on India, aimed at penalising it for purchasing oil from Russia.
India is clearly feeling the heat of Trump’s trade war!
Asian markets traded mixed, while the US stock market ended lower overnight.
NSDL will list on the stock market on Wednesday, August 6, becoming the second listed depository after CDSL. Its IPO was subscribed 41 times.
Upcoming earnings reports from key companies are expected to influence stock-specific movements ahead of the RBI’s policy announcement.
Bajaj Auto, Trent, Divis Laboratories, Bajaj Holdings & Investment, Pidilite Industries, Power Finance Corporation, Hero Motocorp, Bharat Heavy Electricals, Fortis Healthcare, UNO Minda, Jindal Stainless, Bharat Forge, Housing & Urban Development Corporation, KPR Mill, Blue Star and Krishna Institute of Medical Sciences will announce their Q1 earnings today.
On Tuesday, August 5, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹22.48 crore, marking a streak of 11 consecutive trading sessions of selling. In contrast, Domestic Institutional Investors (DIIs) purchased shares worth ₹3,840.3 crore during the same session, extending their buying streak to 21 consecutive trading sessions.
Amid renewed concerns over Trump's tariff threats, Indian equity benchmarks lagged behind global markets on Tuesday. The Nifty 50 slipped by 73 points to settle at 24,649, while the BSE Sensex dropped 308 points to close at 80,710. The Bank Nifty also witnessed a decline, ending the session 259 points lower at 55,360.
US stock markets ended Tuesday in the red as investors reacted to ongoing tariff concerns. Several companies, including Yum Brands, mentioned trade duties in their earnings reports or forward guidance.
The Dow Jones Industrial Average edged down 61.90 points, or 0.14%, closing at 44,111.74. The S&P 500 lost 30.75 points, or 0.49%, to settle at 6,299.19, while the Nasdaq Composite fell by 137.03 points, or 0.65%, ending the day at 20,916.55.
US President Donald Trump declared that he may “substantially” raise tariffs on India within the next 24 hours, citing New Delhi’s ongoing energy ties with Moscow as a major sticking point.
In other developments, US President Donald Trump stated that the U.S. could implement a “small tariff” on pharmaceutical imports, with intentions to increase it in the future. He also suggested that new tariffs targeting semiconductors and chips could be unveiled in the coming week.
The United States saw its trade deficit shrink significantly in June, primarily due to a notable decline in imports of consumer goods. The trade gap narrowed by 16% to $60.2 billion. While exports of goods and services slightly declined to $277.3 billion from over $278 billion in May, imports saw a sharper drop to $337.5 billion from $350.3 billion.
Meanwhile, the US services sector showed signs of stagnation in July. According to data from the Institute for Supply Management (ISM), the non-manufacturing Purchasing Managers’ Index (PMI) dipped to 50.1, down from 50.8 in June. This figure fell short of expectations, as economists had anticipated a rise to 51.5, signaling subdued momentum in service industry growth.
Gold prices rose for the fifth consecutive session on Wednesday, supported by expectations of a potential U.S. interest rate cut. Meanwhile, investors awaited President Donald Trump’s announcement regarding new appointments to the Federal Reserve. As of 7.17 am, Spot gold edged down by 0.05%, reaching $3,378 per ounce.
Crude oil prices traded higher. Brent crude oil rose 0.43% to $67.93 a barrel, while the US West Texas Intermediate (WTI) crude futures gained 0.37% to $65.40.
Disclaimer: The article is for informational purposes only and not investment advice.
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