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Key gauges end lower ahead of RBI's monetary policy decision
Aug-04-2026

Indian equity benchmarks closed lower on Tuesday, as investors turned cautious ahead of the Reserve Bank of India’s monetary policy decision on Wednesday. Besides, adjustments to the new F&O closing-auction mechanism and rising crude oil prices added to market volatility and weighed on sentiment. 

Some of the important factors in trade:

Govt proposes easier tax regime to enhance global competitiveness: The Government has proposed significant relaxations to the eligibility criteria for Eligible Investment Funds (EIFs) managed from India, aiming to strengthen the country's position as a global fund management hub. 

Govt hikes windfall tax on petrol, diesel, ATF exports: The government has increased the windfall tax on exports of petrol, diesel, and aviation turbine fuel (ATF) for the fortnight starting August 3, 2026. The rate of special additional excise duty (SAED) on export of diesel will be Rs 25.5 per litre, up from Rs 15.5 per litre. 

India, Uzbekistan to deepen strategic partnership across key sectors: India and Uzbekistan have agreed to deepen their strategic partnership by expanding cooperation in defence, trade, mining, energy, infrastructure, education, and culture. The decision was taken during a comprehensive review of bilateral ties held by External Affairs Minister S. Jaishankar and Uzbekistan's Foreign Minister Bakhtiyor Saidov. 

Rajya Sabha passes MSME bill to fast-track payments, dispute resolution: With an aim to strengthen Ministry of Micro, Small and Medium Enterprises (MSME) environment in India, Rajya Sabha has passed a bill that seeks to tackle the issue of delayed payments to MSMEs by prescribing timelines to ensure faster adjudication of disputes, provide recovery of the settlement agreement, and address their liquidity issues.

Global front: European markets were trading higher as a slew of positive earnings updates as well as upbeat U.S. manufacturing data released overnight helped offset lingering geopolitical concerns. Asian markets ended mixed on Tuesday as Middle East worries persisted and oil prices rebounded from three- week lows following mixed messages regarding U.S.-Iran peace negotiations. 

Finally, the BSE Sensex fell 210.08 points or 0.27% to 78,428.95 and the CNX Nifty was down by 159.40 points or 0.64% to 24,614.90.   

The BSE Sensex touched high and low of 79,143.15 and 78,211.87, respectively. There were 16 stocks advancing against 14 stocks declining on the index.       

The top gaining sectoral indices on the BSE were Capital Goods up by 0.95%, Metal up by 0.85%, Industrials up by 0.46%, Basic Materials up by 0.26% and Consumer Discretionary up by 0.17%, while Realty down by 1.18%, Utilities down by 0.64%, FMCG down by 0.56%, Energy down by 0.39% and IT down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.09%, Mahindra & Mahindra up by 0.88%, Bajaj Finserv up by 0.85%, Tata Steel up by 0.42% and Bharat Electronics up by 0.32%. On the flip side, Hindustan Unilever down by 1.98%, HDFC Bank down by 1.63%, NTPC down by 1.60%, Interglobe Aviation down by 1.44% and Reliance Industries down by 1.41% were the top losers.

Meanwhile, India and Uzbekistan have agreed to deepen their strategic partnership by expanding cooperation in defence, trade, mining, energy, infrastructure, education, and culture. The decision was taken during a comprehensive review of bilateral ties held by External Affairs Minister S. Jaishankar and Uzbekistan's Foreign Minister Bakhtiyor Saidov. The two leaders also discussed key regional challenges and exchanged views on expanding their multilateral cooperation. 

Jaishankar said India considers Uzbekistan as part of its extended neighbourhood. He noted that bilateral trade currently stands at nearly $1 billion and expressed confidence that it would grow significantly in the coming years. He also emphasized India's interest in expanding cooperation in the mining sector.

He further said India and Uzbekistan share common perspectives on several regional and global issues, particularly when it comes to confronting terrorism, extremism, and drug trafficking. He said ‘we deeply appreciate that the government and people of Uzbekistan have taken a strong stand against terrorism in all its forms and manifestations’.  

CNX Nifty touched high and low of 24,703.90 and 24,427.95, respectively. There were 14 stocks advancing against 35 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Apollo Hospital up by 2.61%, Hindalco Industries up by 2.52%, Trent up by 1.89%, JIO Financial Services up by 0.76% and ITC up by 0.70%. On the flip side, Grasim Industries down by 3.74%, HDFC Life Insurance down by 3.10%, Bajaj Auto down by 2.16%, Max Healthcare down by 2.13% and Reliance Industries down by 2.13% were the top losers. 

European markets were trading higher; UK’s FTSE 100 increased 33.98 points or 0.31% to 10,891.68, France’s CAC rose 7.28 points or 0.08% to 8,621.10 and Germany’s DAX gained 147.29 points or 0.57% to 26,148.60. 

Asian markets ended mixed on Tuesday as investors remained cautious ahead of US economic data such as JOLTS job opening, ADP employment, ISM Services PMI and the nonfarm payrolls report due this week, while crude oil bounced back as uncertainty grew over US-Iran peace negotiations. US President Donald Trump said Iran had one ‘last chance’ to accept a US nuclear deal before facing decapitation, claiming he had called off what would have been ‘the biggest attack since World War II’ to allow diplomacy one final opportunity. Chinese shares gained as AI and semiconductor stocks rebounded following a sharp selloff. South Korea’s Kospi rose tracking Wall Street’s gains overnight. Separately, South Korea's softer-than-expected inflation eased immediate price concerns, though firmer core inflation reinforced expectations for a cautious Bank of Korea policy stance. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,822.29

12.62

0.33

Hang Seng

25,852.92

-156.48

-0.60

Jakarta Composite

6,319.61

85.11

1.35

KLSE Composite

1,732.66

6.93

0.40

Nikkei 225

63,957.53

202.63

0.32

Straits Times

5,612.25

-0.03

0.00

KOSPI Composite

6,358.95

101.50

1.62

Taiwan Weighted

43,360.66

-25.75

-0.06
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