Markets Open Higher On Firm Global Cues, FII Inflows; RBI Policy In Focus

Falling crude oil prices, record highs on Wall Street and sustained foreign investor buying supported sentiment as investors awaited the RBI's monetary policy decision

Outlook Business Desk

Curated by: Satyam Mishra

Published At: 5 August 2026 9:58 am

Markets Open Higher On Firm Global Cues, FII Inflows; RBI Policy In Focus Photo: Markets

Summary of this article

Sensex and Nifty opened higher on strong global cues and FII buying.
RBI policy decision remained the key trigger for Indian stock market sentiment.
Record Wall Street highs and lower crude oil prices supported market gains

Indian benchmark indices opened higher on Wednesday, supported by firm global cues, continued foreign institutional investor (FII) buying and expectations that the Reserve Bank of India (RBI) will keep interest rates unchanged at its monetary policy meeting.

At 9:30 am, the Sensex was up 387.26 points, or 0.49%, at 78,816.21, while the Nifty gained 6.05 points, or 0.02%, to 24,620.95.

1 August 2026

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Global Rally Boosts Sentiment

Asian markets tracked strong overnight gains on Wall Street after upbeat corporate earnings and easing geopolitical tensions lifted investor sentiment.

Japan's Nikkei 225 advanced 3%, while South Korea's Kospi climbed 3.4%. In the US, the Dow Jones Industrial Average and the S&P 500 closed at record highs, rising 1.71% and 1.79%, respectively, while the Nasdaq Composite jumped 2.59%.

Optimism was also supported by hopes of progress towards reopening the Strait of Hormuz, easing concerns over global energy supplies.

Foreign institutional investors remained net buyers on Tuesday, purchasing Indian equities worth ₹2,446.47 crore, extending their recent buying streak and providing further support to domestic markets.

RBI Policy Decision In Focus

Investors are now awaiting the outcome of the RBI's Monetary Policy Committee meeting later in the day.

According to a Reuters poll, the central bank is widely expected to leave the repo rate unchanged, although Governor Sanjay Malhotra is expected to adopt a slightly hawkish tone given inflation risks from volatile crude oil prices and a weaker-than-normal monsoon.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the sharp decline in Brent crude below $80 a barrel and record highs on Wall Street are positive for Indian equities.

He said the RBI is almost certain to keep interest rates unchanged, as a rate hike could hurt the economy's ongoing growth momentum. According to Vijayakumar, investors will focus more on the central bank's policy stance and commentary on managing emerging risks. He added that resilient economic growth, improving corporate earnings and six consecutive sessions of FII buying have strengthened market sentiment, with the market appearing poised for an upside breakout.