Gift Nifty at 24,595 signals that Nifty may gain over 150 points at open.
According to analysts, with foreign portfolio investors turning buyers, Indian markets are expected to remain stable and consolidate further even as focus shifts to RBI’s monetary policy announcement later this week.
“Global risk sentiment has also been supported by a sharp correction in crude oil prices as easing geopolitical concerns prompted investors to unwind the recent risk premium.
In this back drop, Pai said, the upcoming monetary policy will primarily be guided by domestic inflation, liquidity conditions and economic growth rather than mirroring global monetary policy developments.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said:While supportive derivatives positioning and easing crude oil prices provide a constructive backdrop, event risks—including the RBI’s monetary policy decision and geopolitical developments—are likely to keep investors cautious.
The fresh week is set to begin on a positive note for Indian stocks, thanks to softer crude oil prices and stable global markets. Gift Nifty at 24,595 signals that Nifty may gain over 150 points at open. According to analysts, with foreign portfolio investors turning buyers, Indian markets are expected to remain stable and consolidate further even as focus shifts to RBI’s monetary policy announcement later this week. First quarter results declared by India Inc is largely on expected lines.
Analysts also welcome the revival of monsoon in some parts of India as against the fear of El Niño.
According to Ponmudi R, CEO of Enrich Money, Indian equity markets are poised for a cautiously positive start, with investor sentiment improving after US President Donald Trump indicated that negotiations with Iran are expected to resume on Monday, reviving hopes of a diplomatic resolution following recent military tensions.
“Global risk sentiment has also been supported by a sharp correction in crude oil prices as easing geopolitical concerns prompted investors to unwind the recent risk premium. WTI crude is currently trading around the $80–81 per barrel mark, nearly 6% below its recent highs, offering relief for India’s inflation outlook, import bill, and corporate input costs,” he said.
Meanwhile, experts said though RBI may hold rate in its August 3-5 meeting, the focus will be more on its outlook comments.
Vinay Pai, MD & Head of Fixed Income, Equirus Capital, said the US Federal Reserve’s decision to maintain a relatively hawkish policy stance has pushed US Treasury yields higher, narrowing the yield differential between Indian and U.S. bonds. While the immediate impact on Indian bond markets has been limited, persistently elevated U.S. yields could moderate foreign portfolio inflows into Indian debt and place mild upward pressure on domestic government security yields.
In this back drop, Pai said, the upcoming monetary policy will primarily be guided by domestic inflation, liquidity conditions and economic growth rather than mirroring global monetary policy developments. “However, if elevated global yields persist and portfolio debt inflows moderate, the RBI is likely to maintain a neutral and cautious policy stance rather than aggressively ease rates. At the same time, the RBI will need to ensure adequate foreign currency and domestic liquidity through appropriate measures, including facilitating FCNR(B) deposit inflows if required, while maintaining orderly conditions in the foreign exchange market,” said and added any tightening in systemic liquidity, if not offset through liquidity operations, could lead to higher bond yields and money market rates. This, in turn, may increase banks’ funding costs, delay reductions in lending rates, and modestly affect credit growth and overall economic activity, he cautioned.
Market participants also welcomed the latest stance FPIs, who turned net buyers of Indian equities in July worth ₹20,200 crore, after selling for four consecutive months.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said: There is a clear shift in FPI flows to India. In July, FPIs turned buyers with a cumulative buying of equities worth Rs 20199 crore, of which Rs 6731 crores was through exchanges and Rs 13467 crores was through the ‘primary market and others’ category. Debt inflows also witnessed big jump with Rs 29211 crores coming through the ‘General Limit’ category alone.
“The excessive volatility in markets like South Korea and Taiwan and the concentration risk in the ‘chip trade’ are prompting the FPIs to look for stabler markets like India. The stability in rupee and fair valuations of India’s large cap stocks are other factors that are facilitating the renewed FPI inflows into India,” he said adding a significant recent trend is the FPIs buying into Indian mid and small cap stocks.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said:While supportive derivatives positioning and easing crude oil prices provide a constructive backdrop, event risks—including the RBI’s monetary policy decision and geopolitical developments—are likely to keep investors cautious. Against this backdrop, a stock-specific approach, with an emphasis on fundamentally strong companies and disciplined risk management, is likely to remain the preferred strategy.
Published on August 3, 2026
