CHENNAI: Indian equity markets opened higher on Monday, August 4, rebounding modestly after five straight weeks of losses. By 11:20 a.m., the BSE Sensex was up around 150 points at 80,753, while the NSE Nifty 50 rose about 70 points to trade near 24,632, supported by gains in metal and auto stocks.
Metals led sectoral gains with a rise of around 1.6%, driven by a softer U.S. dollar, while auto stocks climbed over 1% following strong quarterly results from TVS Motor and Hero MotoCorp. On the other hand, IT stocks remained under pressure, declining around 0.4%, amid concerns over U.S. trade policy and weak macroeconomic cues.
Broader markets showed resilience, with both mid-cap and small-cap indices up about 0.4%, reflecting selective buying in high-beta segments. However, market breadth remained mixed, with more than a third of major sectoral indices still trading in the red.
Investor sentiment was supported by expectations of a potential rate cut by the U.S. Federal Reserve in September, following weaker-than-expected US jobs data. Domestically, attention has turned to the Reserve Bank of India’s Monetary Policy Committee meeting, which began today and concludes on August 6.
Despite the positive start, analysts remain cautious due to elevated US tariffs on Indian exports and global growth uncertainties. The Nifty faces resistance near the 24,800–24,900 zone, while support is seen around 24,500. Traders are advised to maintain hedged positions until a decisive breakout or breakdown occurs.
Markets will closely watch developments from the RBI policy meet, foreign institutional investment flows, and global economic data in the coming sessions, the analysts believe.