Post Session: Quick Review

Indian equity benchmarks snapped their two-day losing streak on Monday, with the Nifty and Sensex closing near the day’s high points, as investors remained focused on the upcoming Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting scheduled from August 4 to August 6, 2025. Markets made a positive start and remained higher throughout the day, as traders took support after State Bank of India in its report said that RBI may announce a 25 basis points repo rate cut in its monetary policy review to boost credit growth ahead of Diwali.

Some of the important factors in today’s trade:

Forex reserves rise by $2.7 billion to $698.19 billion: Traders took support with the RBI stating that India's forex reserves rose by $2.70 billion to $698.19 billion during the week ended July 25, 2025. 

Gross GST mop-up rises 7.5% to Rs 1.96 lakh crore: Sentiments remained upbeat as Gross GST collection increased 7.5 per cent to about Rs 1.96 lakh crore in July on higher domestic revenues and taxes from imports.

Finance Ministry working on strategies to segregate economy from geo-political shocks: Traders took note of report that Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the finance ministry is doing weekly capital review of all public sector undertakings. He added that the ministry is working on strategies to segregate the Indian economy from geo-political risks.  

Global front: European markets were trading in green, as investors shrugged off data that showed Eurozone investors' morale deteriorated sharply in August. Asian markets ended mixed, amid soft U.S. jobs data stirred concerns over the impact of new tariffs on the world's largest economy but fueled bets on a Federal Reserve rate cut in September.

The BSE Sensex ended at 81018.72, up by 418.81 points or 0.52% after trading in a range of 80500.51 and 81093.19. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.11%, while Small cap index up by 0.76%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 2.58%, Realty up by 1.88%, Basic Materials up by 1.79%, Auto up by 1.54% and TECK up by 1.46%, while FMCG down by 0.04% and Bankex down by 0.02% were the few losing indices on BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 4.05%, Adani Ports and Special Economic Zone up by 3.71%, Bharat Electronics up by 3.55%, Tech Mahindra up by 2.46% and TCS up by 2.43%. On the flip side, Power Grid Corp down by 1.01%, HDFC Bank down by 0.86%, ICICI Bank down by 0.53% and Hindustan Unilever down by 0.25% were the few losers. (Provisional)

Meanwhile, the rating agency CareEdge in a pre-monetary policy review meeting has said that the Reserve Bank of India (RBI) has already frontloaded the rate cuts, anticipating the moderation in inflation, and it is unlikely the central bank would go for further rate cuts unless economic growth concerns aggravate. 

It said while the US reciprocal tariff rate (25 per cent for India) and proposed penalty are concerning, the RBI may opt to wait till ‘we get further clarity on this front’. The next bi-monthly RBI monetary policy review meeting is scheduled for August 4-6, 2025. 

The upcoming monetary policy meeting in August takes place against the backdrop of a notable moderation in headline inflation in recent months, largely driven by easing food prices. Inflation is projected to average below the 4 per cent target over the next two quarters, supported by a favourable base and muted food inflation.

CareEdge noted the global trade policy uncertainty will continue to cast a shadow on India's growth outlook; however, the overall impact is likely to be limited given India's limited merchandise trade exposure to the US economy.

The CNX Nifty ended at 24722.75, up by 157.40 points or 0.64% after trading in a range of 24554.00 and 24736.25. There were 43 stocks advancing against 7 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 5.18%, Tata Steel up by 4.08%, Adani Ports and Special Economic Zone up by 3.56%, Bharat Electronics up by 3.45% and JSW Steel up by 2.86%. On the flip side, Power Grid down by 1.06%, HDFC Bank down by 0.86%, ONGC down by 0.70%, Apollo Hospital down by 0.63% and ICICI Bank down by 0.58% were the top losers. (Provisional)

European markets were trading higher; Germany’s DAX gained 296.53 points or 1.27 to 23,722.50, France’s CAC rose 60.84 points or 0.81 to 7,607.00 and UK’s FTSE 100 increased 25.23 points or 0.28 to 9,093.81.

Asian markets settled mixed on Monday, as the participants sidelined amidst concerns over implications of new trade tariffs and on softer US job growth. South Korea's KOSPI rebounded from previous session's four-week low rate, buoyed by the strong performances in major tech stocks. On the flip side, Japan's Nikkei tumbled the most among Asian indices, about two-week low rate.