Indian equity markets are set for a strong opening today, with the GIFT Nifty rising 170 points following a record-breaking rally on Wall Street and falling crude oil prices. Investors are now shifting their focus to the Reserve Bank of India’s policy decision, where the central bank is expected to keep interest rates unchanged.
Indian stock markets are preparing for a positive start on Wednesday, August 5, 2026, as GIFT Nifty futures indicate a gain of approximately 170 points. This anticipated gap-up opening follows a session of profit-taking on Tuesday, where the Nifty 50 slipped by 159 points to close at 24,614.90. The current positive mood is heavily influenced by strong global signals.
Overseas, U.S. stock indices reached fresh record highs, and Asian markets have rallied as well. A major reason for this optimism is the decline in crude oil prices. Hopes for a potential diplomatic deal between the U.S. and Iran regarding the Strait of Hormuz have eased concerns about supply disruptions, which generally helps market sentiment by reducing energy-related inflationary pressure.
RBI Policy and Inflation Outlook
The primary domestic focus for today is the Reserve Bank of India’s (RBI) Monetary Policy Committee decision. After a three-day meeting, the central bank is expected to announce its stance on interest rates. Most market analysts and economists anticipate a status quo, with the repo rate likely held at 5.25%. While this pause is widely expected, investors will be listening closely to the RBI Governor’s commentary on liquidity, economic growth, and the inflation outlook. Retail inflation, which stood at 4.38% in June, remains a metric that the central bank watches carefully to ensure it stays within the target range.
Despite the selling seen on Tuesday, the broader market trend has shown resilience. Foreign institutional investors (FIIs) have been a source of support, marking six consecutive sessions of net buying. As the market digests the upcoming policy announcement, investors are also paying attention to technical levels. The Nifty has immediate support in the 24,300-24,400 range, while a sustained move above 24,600 could indicate further upward momentum. The key monitorable for the rest of the day will be the central bank’s forward-looking guidance, which often shapes market direction more than the rate decision itself.