The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, 5 August, as overnight investors await the outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting later today.

Asian markets traded mostly higher on Wednesday, while the US stock market also ended the previous session in positive territory, offering supportive global cues.

The Indian benchmark indices delivered a rare divergence on Tuesday, 4 August. The 30-share Sensex gained more than 0.60%, while the NSE Nifty 50 declined over 1%, with the contrasting performance of the two indices drawing investors’ attention.

Domestic Market Recap

On Tuesday, Indian indices ended in the red:

• Sensex slumped by 210.08 points (0.27%) to close at 78,428.95.
• Nifty 50 moved down by 159.40 points (0.64%) to settle at 24,614.90

Gift Nifty

Gift Nifty was trading near 24,731, around 175 points higher than the previous Nifty futures close, hinting at a positive start for Indian markets.

Overnight Wall Street Performance

US stock futures traded mixed on Tuesday evening after Wall Street extended its rally for a second consecutive session, with the benchmark S&P 500 closing at a fresh record high.

• The Dow Jones Industrial Average soared by 907.47 points (1.71%) to close at 54,085.88.
• S&P 500 was up by 136.02 points (1.79%), ending at 7.736.52.
• The Nasdaq Composite was higher by 671.10 points (2.59%), finishing at 26,584.99.

Overnight Major Global Events Driving Sentiment

1. RBI MPC Meeting Outcome: The Reserve Bank of India (RBI) is set to announce its August monetary policy decision on Wednesday, August 5. RBI Governor Sanjay Malhotra will unveil the Monetary Policy Committee’s (MPC) decision at 10:00 am, followed by a press conference at 12:00 pm. Investors will closely watch the policy stance and the RBI’s commentary on inflation, growth, and interest rates.
2. US-Iran War: Qatar said on Tuesday that negotiators had drafted an interim proposal, while both Washington and Tehran signalled progress in talks aimed at reopening the strategically important Strait of Hormuz to commercial shipping. However, even if both sides reach a temporary agreement to restore shipping through the Strait, it may not be sufficient to end the conflict permanently or resolve US President Donald Trump’s concerns over Iran’s nuclear programme.

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