Benchmark indices opened Tuesday’s session on a weak note, with the Nifty 50 trading lower by 175 points and the Sensex slipping modestly, as markets corrected after Monday’s sharp rally that analysts attributed partly to a technical distortion from the new Closing Auction Session mechanism.The Sensex, which closed Monday at ₹78,639.03 and opened at ₹79,132.97, was trading at ₹78,774.73, up ₹135.70 or 0.17 per cent, as of 9.17 AM on August 4. The Nifty 50, which had closed Monday at 24,774.30 and opened at 24,703.90, was trading at 24,599.05, down 175.25 points or 0.71 per cent, at the same time.Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, attributed the opening softness directly to Monday’s surge.“The 390-point spurt in the Nifty yesterday caused primarily by the new Closing Auction Session for determining the closing prices of stocks in the F&O segment is expected to normalise today,” he said, adding, “investors need not attach much importance to this one-day aberration.”Monday’s session had seen the Nifty gain 390.70 points, or 1.60 per cent, opening at 24,572 and closing at the day’s high of 24,774.30. Bank Nifty had similarly surged 983.10 points, or 1.72 per cent, closing at 58,247.Despite the soft open, the broader market setup remains constructive. Institutional flows on Monday reinforced the positive undertone, with Foreign Institutional Investors purchasing Indian equities worth ₹922 crore and Domestic Institutional Investors adding ₹1,571 crore.Vijayakumar noted that the underlying trend remains intact. “The significant positive is the return of FIIs to the Indian market. FIIs have been buyers in the cash segment during the last five days and consequently this has triggered sharp short-covering. In the near-term, the market is likely to rally further led by the large-caps,” he said.According to Motilal Oswal’s monthly wrap, July 2026 saw FII inflows of $2.5 billion into Indian equities, the first month of net buying after four consecutive months of outflows.In calendar year 2026 to date, FII equity outflows still stand at $26.5 billion, while DII equity inflows have reached $53.7 billion.Among Nifty 50 stocks, early gainers included Adani Ports, up 0.49 per cent to ₹1,709.40, and Adani Enterprises, up 0.47 per cent to ₹3,082.30. Tech Mahindra gained 0.28 per cent to ₹1,653.60, Trent added 0.28 per cent to ₹3,058.50, and Hindalco Industries rose 0.22 per cent to ₹997.10.On the losing side, Grasim Industries fell the most, down 3.04 per cent to ₹3,161.00. Bajaj Auto dropped 2.29 per cent to ₹11,585.00, while Titan Company shed 2.23 per cent to ₹4,888.60. SBI Life Insurance declined 1.86 per cent to ₹1,879.40, and Tata Consumer Products fell 1.41 per cent to ₹1,094.30.Sectorally, Monday’s session had seen Nifty IT and Tourism outperform, each gaining over 2.5 per cent, while the Media index underperformed, declining 3.4 per cent.Capital Goods, PSU Banks, Metals, Oil & Gas, Healthcare, and Utilities currently trade at a premium to their long-period average valuations, while Private Banks, Consumer, Technology, Retail, and Real Estate trade at a discount.On the global front, the Dow Jones Industrial Average closed Monday at a record 53,178, rising nearly 700 points, its 22nd record close this year.The S&P 500 gained 1.5 per cent and the Nasdaq Composite rose 2.1 per cent, supported by easing U.S.-Iran geopolitical tensions and stronger-than-expected July manufacturing data.However, Asian markets failed to carry the momentum, with Japan’s Nikkei 225 falling over 0.5 per cent and South Korea’s Kospi slipping more than 1 per cent.Crude oil prices remained a key variable. Brent crude was hovering near $84 a barrel and WTI near $80, both near three-week lows, after U.S. President Donald Trump signalled a pause in military action against Iran to pursue diplomatic talks.The Indian rupee closed Monday at 95.35, strengthening 4 paise on the back of crude’s retreat and sustained foreign inflows.All eyes this week are on the Reserve Bank of India’s Monetary Policy Committee decision, due Wednesday, and a heavy earnings calendar. Bharti Airtel, ONGC, Power Grid Corporation, Trent, Hindalco Industries, State Bank of India, and Titan Company are among the large-caps scheduled to report quarterly results.“Management commentary on demand trends, margins, and future outlook will remain closely monitored,” said Ponmudi R, CEO of Enrich Money.Technically, Nifty support is seen at 24,500–24,400, while resistance lies at 24,800–25,000. Bank Nifty finds support near 57,300–57,500 with resistance at 58,500–58,700.The Nifty’s 7-day RSI stood at 78.36 and Bank Nifty’s at 83.89, both in overbought territory, suggesting the possibility of near-term consolidation even as the medium-term trend holds positive.More Like ThisPublished on August 4, 2026 Companies to followAdani Ports & Special Economic Zone LtdAdani Enterprises LtdTech Mahindra LtdHindalco Industries LtdGrasim Industries LtdBajaj Auto LtdTitan Company LtdSBI Life Insurance Company LtdTata Consumer Products Ltd