Markets opened on a cautiously positive note on Wednesday, August 5, as a sharp fall in crude oil prices and record-setting gains on Wall Street overnight offset domestic uncertainty ahead of the Reserve Bank of India’s monetary policy decision expected later in the morning session.The Sensex, which closed at ₹78,428.95 on Tuesday, opened at ₹79,055.38 and was trading at ₹78,832.06, up ₹403.11 or 0.51 per cent, as of 9.25 AM. The Nifty 50, which ended Tuesday’s session at ₹24,614.90, opened at ₹24,669.20 and was trading at ₹24,627.95, a gain of ₹13.05 or 0.05 per cent, as of 9:25 AM IST. GIFT Nifty futures had pointed to a stronger open, trading above the 24,700 level ahead of the bell.“The sharp dip in Brent crude to below $80 and record closing in the US markets augur well for the Indian market today,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “... The market will be focused more on the central bank’s stance and its commentary on managing the emerging challenges.”Brent crude fell more than 5 per cent overnight to a three-week low, slipping below $80 per barrel, after U.S. Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz to commercial shipping could be reached within a day. WTI crude slid to near $74 a barrel before stabilising around $75. The drop in oil prices is significant for India, a major crude importer, as it eases pressure on inflation, the current account deficit and the rupee.“... It appears that the market is poised for a breakout on the upside,” Vijayakumar added, citing growth resilience, improving corporate earnings and Foreign Institutional Investors turning net buyers for a sixth consecutive day.FIIs purchased Indian equities worth ₹2,446 crore on Tuesday, August 4, extending their buying run. Domestic Institutional Investors, however, turned net sellers, offloading equities worth ₹936 crore as they booked profits following the recent market rally.Among Nifty 50 gainers in early trade, Larsen & Toubro rose 1.87 per cent to ₹4,064.70, IndiGo climbed 1.81 per cent to ₹5,455, Mahindra & Mahindra gained 1.29 per cent to ₹3,477.20, Wipro added 0.99 per cent to ₹188.15, and Bajaj Finance was up 0.96 per cent to ₹1,160.On the losing side, Apollo Hospitals dropped 2.28 per cent to ₹8,843.50, Sun Pharma fell 1.34 per cent to ₹1,937.70, SBI Life Insurance declined 1.14 per cent to ₹1,877.30, Nestle India slipped 0.99 per cent to ₹1,504.90, and Dr. Reddy’s Laboratories was down 0.96 per cent to ₹1,161.40.In Tuesday’s session, sectoral performance was mixed. Realty was the biggest laggard, declining 2.40 per cent, followed by Oil & Gas, FMCG and IT. Media and Metal were the only sectors to close in the green, with the Media index gaining 1.80 per cent. The Nifty Midcap 100 fell 0.30 per cent while the Nifty Smallcap 100 eked out marginal gains of 0.20 per cent.The overnight session on Wall Street was driven by a surge in technology stocks tied to artificial intelligence spending. The Dow Jones Industrial Average surged 907.47 points or 1.7 per cent, the S&P 500 advanced 1.8 per cent to its first record close since June, and the Nasdaq Composite rallied 2.6 per cent, now nearly 9 per cent higher since last Wednesday. Microsoft shares surged 25 per cent over three days on strong quarterly results, with its Azure cloud unit nearing a $100 billion annual revenue run rate. Palantir Technologies jumped nearly 30 per cent after beating quarterly estimates and raising its full-year revenue guidance.Asian markets followed suit, with Japan’s Nikkei 225 advancing more than 3 per cent and South Korea’s Kospi surging over 4 per cent.The RBI’s Monetary Policy Committee decision is the principal event risk for the session. The central bank is widely expected to hold the repo rate at 5.25 per cent and maintain a neutral policy stance. CPI inflation rose to 4.38 per cent in June 2026, with food inflation at 5.32 per cent and WPI inflation at 9.87 per cent. India’s foreign exchange reserves stood at approximately $676.2 billion as of July 17, 2026, providing a buffer against external shocks.“... The central bank is almost certain to hold the rates in today’s policy since any rate hike now will impact the ongoing growth momentum in the economy,” Vijayakumar said.Technically, analysts say the Nifty needs to sustain above 24,600 to build on its recent recovery, with the 24,800–25,000 zone as the next target. Bank Nifty, which closed at ₹57,907.20 on Tuesday, is seen finding support between 57,400 and 57,500, with resistance at 58,500–58,600. The Indian rupee closed at 85.38 on Tuesday, depreciating 4 paise amid a firmer U.S. dollar.“Traders should avoid chasing the gap-up opening and instead look to buy on dips near key support levels,” said Gaurav Udani, Founder of Thincredblu Securities. “... As long as Nifty Futures holds above 24,550, the short-term trend remains firmly bullish.”Published on August 5, 2026