Nifty Jumps, Sensex Soars: Top Reasons Behind Today’s Market Move – 5th August 2026
Indian equities opened higher on Wednesday, with the Sensex at 78,867 and Nifty 50 above 24,645 in early trade, as investors tracked firm Asian markets and awaited the Reserve Bank of India’s monetary policy decision. According to NSE and BSE data, the Sensex gained about 0.56 percent at the open, while the Nifty added around 0.13 percent after a volatile previous session. The RBI Monetary Policy Committee is widely expected to keep the repo rate at 5.25 percent, keeping attention on the central bank’s commentary on inflation, liquidity and growth.
The session started with a gap-up, extending the positive bias signalled by GIFT Nifty futures, which were trading around 24,733, a premium of roughly 177 points to the previous Nifty futures close. Early gains followed a four-day winning streak that had been interrupted on Tuesday, when the Sensex fell 210 points to 78,428.95 and the Nifty declined 159 points to 24,614.90 as the market adjusted to the new Closing Auction Session for derivatives-linked stocks. Traders said the opening strength reflected both global risk-on sentiment and ongoing recalibration to the revised settlement framework.
Asian markets provided a supportive backdrop, with Japan’s Nikkei and South Korea’s benchmark indices up more than 3 percent, tracking record closes on Wall Street. US indices rallied overnight, with the S&P 500 gaining 1.8 percent, the Dow Jones Industrial Average rising 1.71 percent and the Nasdaq 100 advancing 2.59 percent, according to US market data. Strong corporate earnings, particularly in technology and semiconductor names, and easing geopolitical tensions in the Middle East underpinned the global equity heatmap.
Index Performance
Key indices reflected the early strength and the prior session’s volatility.
| Index | Close | Move & % Change | Comments |
|---|---|---|---|
| Sensex | 78,867.36 | +438 pts (+0.56%) | Opened gap-up, extending gains on global cues ahead of RBI policy. |
| Nifty 50 | 24,645.65 | +31.5 pts (+0.13%) | Held above 24,600, tracking GIFT Nifty premium and Asian strength. |
| Bank Nifty | 57,907 | -334 pts (-0.58%) (prev) | Closed lower on Tuesday, with 58,200, 58,300 seen as near-term resistance. |
The primary driver of Wednesday’s early move was improving global risk sentiment, helped by expectations that shipping through the Strait of Hormuz could normalise as mediators work on a potential US, Iran understanding. This optimism contributed to a sharp decline in crude prices earlier in the week, with WTI crude falling towards 74 dollars per barrel before stabilising near 75 dollars, and Brent near 79, 80 dollars. Domestic traders also pointed to sustained foreign institutional investor buying over recent sessions and continued domestic institutional support as reinforcing the recovery tone.
At home, the RBI policy review loomed large over trading decisions, with most economists expecting a status quo on rates and a data-dependent stance. In its June meeting, the RBI had held the repo rate at 5.25 percent, raised its FY27 inflation forecast to 5.1 percent from 4.6 percent, and trimmed its GDP growth projection to 6.6 percent from 6.9 percent. The latest review comes against a backdrop of retail inflation rising to 4.38 percent in June, breaching the 4 percent target for the first time in 17 months, and heightened global uncertainty linked to West Asia and currency moves.
Sectorally, early trade showed renewed interest in financials and IT, where profit booking had dominated the previous session as investors digested the new Closing Auction Session. Analysts said Monday’s auction had lifted closing prices of several heavyweight stocks, and Tuesday’s reversal brought them closer to levels seen during continuous trading, creating short-term volatility in banks and large-cap technology names. Real estate sentiment was also in focus, with industry participants saying a rate pause would support homebuyer confidence and keep project financing costs predictable. Rate-sensitive pockets such as autos and property developers were expected to respond closely to the RBI’s guidance on liquidity and growth.
Sectoral Performance
Early moves across sectors reflected the interplay of global cues, domestic policy expectations and the new auction framework.
| Sector/Index | Direction | Key Drivers |
|---|---|---|
| Financials | mixed to higher | Profit booking after CAS-led volatility, RBI policy outlook watched for lending conditions. |
| IT | mixed to higher | Tracking Nasdaq gains and strong US tech earnings, with prior profit booking easing. |
| Energy | steady to higher | Crude stabilisation after recent fall, Middle East developments monitored. |
| Real estate | sentiment positive | Industry expects rate pause to support demand and project financing stability. |
Individual movers included BSE Ltd, which remained in focus after reporting a 62 percent year-on-year jump in consolidated net profit to 874 crore rupees for the April, June quarter of FY27, according to its exchange filing. Revenue from operations rose 63 percent to 1,566 crore rupees, driven by a 93 percent surge in equity derivatives income and broad-based growth across most segments. Investment income increased to 135 crore rupees from 79 crore rupees, even as total expenses climbed 49 percent to 537 crore rupees on higher employee and technology costs. The stock had gained more than 1 percent on Tuesday to close at 3,618 rupees on the NSE and has delivered 38 percent returns so far in 2026.
Brokerage commentary on BSE highlighted both the strong quarter and regulatory headwinds in the equity options segment. One institutional research house maintained a “Buy” call but trimmed its target price to 4,090 rupees per share from 4,570 rupees, citing industry volume declines after recent rules and cutting FY27 and FY28 profit estimates by up to 17 percent. Another brokerage kept a “Neutral” stance while nudging its target to 3,940 rupees, noting that operating revenue growth was largely in line with expectations and forecasting around 19 percent compound annual growth in operating revenue over FY26, FY29, with reported and core profit after tax seen growing at 18 percent.
Beyond exchanges, traders continued to watch large-cap banks and IT services firms that had seen auction-driven swings at the start of the week. Market experts said investors used Tuesday’s session to book profits in these names after Monday’s rally, with the combination of weekly derivatives expiry and the revised F&O closing price mechanism distorting short-term trends. They added that healthy auction volumes suggested continued institutional participation, supporting the view that recent volatility reflected technical adjustments rather than weakening fundamentals.
Key Market Statistics
Early in the day, key macro and flow indicators added to the constructive undertone.
| Statistic | Value/Change | Context |
|---|---|---|
| GIFT Nifty | ~24,733 (+177 pts premium) | Signalled gap-up open for Nifty 50, tracking global risk-on sentiment. |
| Rupee open | 94.92 per dollar (+0.46) | Stronger ahead of RBI policy, helped by easing crude and US, Iran talks optimism. |
| Crude (Brent) | ~$79.67 per barrel (+0.39%) | Modest rebound after steep fall on de-escalation hopes in Middle East conflict. |
On the currency front, the rupee opened stronger at 94.92 per dollar compared with Tuesday’s close of 95.38, its firmest level since early July, according to interbank data. Dealers attributed the move to the recent drop in crude prices and hopes of progress in US, Iran talks, which could reduce supply risk premiums. The rupee’s recovery from recent lows now stands at about 2 percent, although traders said the RBI’s tone on external risks and capital flows would be closely watched.
Technical analysts saw key levels for the headline indices shaping intraday strategy. For the Sensex, the 77,700, 78,000 band was identified as immediate support, while 78,900, 79,200 remained a crucial resistance zone after the index slipped below its 200-day exponential moving average in the previous session but stayed above its 20-, 50- and 100-day EMAs. For the Nifty 50, the 24,400, 24,300 area, coinciding with a recent breakout zone, was cited as near-term support, with resistance around 24,700 and the 24,750, 24,800 range marked by Tuesday’s closing auction highs. Bank Nifty support was seen near 57,400, 57,300, aligned with the 200-day moving average around 57,450, while resistance clustered between 58,000 and 58,300, followed by 58,400.
Globally, investors were focused on upcoming US labour data, with the ADP employment report due later on Wednesday and the non-farm payrolls release scheduled for Friday. These prints are expected to shape expectations for the US Federal Reserve’s September policy meeting after the Fed left rates unchanged at its latest review. In commodities, gold and silver prices on the domestic futures market edged higher in morning trade, supported by a softer dollar index around 99.77 and lower crude, according to MCX data.
The rest of the session on Dalal Street is likely to hinge on the RBI’s policy statement and press conference, which will set the tone for rate-sensitive sectors and broader liquidity expectations. Market participants will parse the central bank’s assessment of inflation, growth and external risks, including West Asia and US policy, for clues on the trajectory of rates and bond yields. With global equities in a risk-on phase and domestic flows supportive, traders said the opening strength positions the market for a data-driven move rather than a directional call until the RBI’s guidance is fully absorbed.
