Indian equity indices surge amid easing world tensions, RBI decision awaited

Mumbai, 5 August – A reduction in international tension lifted Indian equities in Wednesday’s trading session. The Sensex advanced 626.43 points, or 0.80%, to close at 79,055.38, and the Nifty rose 54.30 points, a 0.22% increase, ending at 24,669.20.

Real‑estate and infrastructure stocks supplied the early lift, with Nifty Real Estate and Nifty Infra topping the day's gainers. Other sector indices – Nifty India Defence, Nifty PSU Bank, Nifty Metal, Nifty Auto, Nifty Oil & Gas, Nifty Commodities and Nifty PSE – also posted upward moves.

In contrast, the Nifty FMCG, Nifty Healthcare, Nifty Pharma, Nifty Private Bank and Nifty Consumer Durables indices slipped into the red.

Notable Sensex winners included IndiGo, M&M, Bajaj Finserv, L&T, Trident, Bharti Airtel, Tech Mahindra, Kotak Mahindra Bank, Maruti Suzuki, SBI, Adani Ports, Asian Paints and NTPC. Sun Pharma, Titan, TCS and BEL were among the losers.

Analysts pointed to comments by the U.S. Treasury Secretary, who indicated that a possible agreement with Iran could reopen the Strait of Hormuz, easing oil‑price pressures. Brent crude fell 1.35% to $78.29 per barrel and WTI dropped 1.68% to $74.50, benefitting India, which imports more than 80% of its crude oil.

Investors now await the Reserve Bank of India's Monetary Policy Committee announcement, scheduled for 10:00 a.m. local time.

Asian markets largely traded higher – Tokyo, Shanghai, Seoul and Jakarta showed green numbers, while Hong Kong was flat. The U.S. markets closed sharply higher on Tuesday, with the Dow up 1.71% and the technology index gaining 2.59%.

Foreign Institutional Investors continued their net purchases, committing ₹2,446.47 crore to Indian equities on Tuesday, while Domestic Institutional Investors withdrew ₹936.14 crore.