The domestic equity market edged higher, supported by strong performance in the metal and auto sectors. A weakening U.S. dollar, along with robust monthly auto sales and encouraging quarterly results from leading automakers, helped renew investor interest in these sectors, said Vinod Nair, Head of Research, Geojit Investments.

He said the Q1 earnings summary indicates that consumption-driven companies are benefiting from a rebound in volume demand. Meanwhile, rising unemployment and slower job creation in the U.S. have reinforced expectations of a potential FED rate cut. “However, there still remains room for caution due to high U.S. tariffs,” he added.

The market’s positive closing was fuelled by robust buying in metal and auto stocks, improved global cues, and renewed optimism ahead of major corporate earnings and the upcoming RBI policy announcement, said Vaibhav Vidwani, Research Analyst at Bonanza.

“A key catalyst for today’s gains was relief in global risk sentiment, as Asian markets partially recovered and US index futures stabilized after recent volatility. Investors shrugged off concerns about new US tariffs following a softer jobs report in America, which revived hopes for a potential US Federal Reserve rate cut next month,” he said.

Domestically, key FMCG players and select auto majors like Hero MotoCorp delivered strong performances, while cyclicals such as metal stocks led the advances due to optimistic demand outlooks, Vidwani said.

On the BSE Sensex pack, 26 out of 30 stocks ended in positive terrain, led by Tata Steel, BEL, Adani Ports, Tech Mahindra, and TCS.

On the other hand, Power Grid, HDFC Bank, ICICI Bank, and HUL were only losers.

Ending two sessions gaining streak, Indian benchmark indices ended higher on Monday, tracking firm cues from global cues. The BSE Sensex rose 419 points to end above crucial level of 81,000 to 81,019, and the NSE Nifty added 157 points to end higher at 24,722.75.  

Shares of BLS E-Services were locked in its 5% upper circuit limit on Monday after the technology-enabled digital service provider announced its consolidated financial results for the quarter ended June 2025.

The company’s total income surged 205.3% YoY to 251.2 crore, while PAT grew by 38.7% YoY to Rs. 17.5 crore.

Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E-Services Ltd. said: “We are pleased to deliver a strong start to FY26, as our Q1 performance reflects the depth and resilience of our business model. Total Income for the quarter grew significantly by 205.3% year-on-year, due to healthy traction in our businesses and consolidation of Aadifidelis Solutions. Our focus on operational discipline and value-led service delivery also led to an EBITDA growth of 33.5%, while our Profit After Tax (PAT) increased by 38.7% YoY, reaffirming the scalability and strength of our platform.

Shares of metal companies witnessed strong buying on Monday, with index heavyweights Tata Steel, Jindal Steel and Power (JSPL), NMDC, JSW Steel, Hindalco Industries, Vedanta, National Aluminium Company, and Steel Authority of India (SAIL) rising up to 4%. The Nifty Metal index also rose nearly 3% during the session today.

The rally in metal stocks were driven by rising demand for domestic steel in the backdrop of growing infrastructure projects, affordable housing, railways, ports, highways and other sectors.

Shares of ITC gained as much as 1.5% to hit an intraday high of ₹422.80 on the BSE today after the FMCG heavyweight released its June quarter earnings report.

ITC recorded flat growth in standalone profit at ₹4,912 crore for the quarter ending June 30, 2025, compared to ₹4,917 crore a year ago, missing brokerages' estimates of about ₹5,000 crore. This was mainly due to the global headwinds caused by geopolitical tensions, evolving trade policy dynamics and heightened uncertainty and volatility in the operating environment.

The company's revenue surged 20% to ₹21,059 crore in the said quarter, up from ₹17,593 crore a year ago. ITC says high-frequency indicators for the quarter suggest mixed trends.

Extending opening gains, Indian benchmark indices were trading near its day's high levels in the final hour of trade. The BSE Sensex was up 430 points to reclaim 81,000 level, while the Nifty jumped 150 points to cross 24,700 mark.

As of 1.30 pm today, some of the top gainers who are part of the Sensex include companies like Tata Steel, Adani Ports, and Reliance Industries Ltd.

NSDL's share allotment is expected to be finalised today. The IPO has, so far, received very positive response from investors.

Tata Investment Corporation Ltd., from the stables of the tata Group, has said that it will go for a stock split. The announcement came alongside its Q1 results today.

Shares of logistics firm Delhivery surged over 5% on 4 August, scaling a 52-week high of ₹452.55, after the company posted a solid set of numbers for the June quarter. The performance, riding on operational efficiency and strong volume growth, has renewed optimism among investors and analysts alike, who now see better days ahead for the tech-driven delivery major.

Logistics firm Delhivery saw its shares surge almost 6% on the back of robust Q1 earnings, that came in on Friday. As of 12.00 noon, the scrip was trading at ₹455.15, up 5.89%.

Nifty Auto and Nifty Metal are trading at 1.48% and 1.66% respectively, outperforming its sectoral peers. Broader markets remain flat, while Sensex and Nifty 50 seeing marginal upticks of 0.3% each.

India VIX is a market indicator that measures the expected volatility of the Nifty 50 index over the next 30 days. It is calculated based on the prices of out-of-the-money options traded on the NSE. A higher India VIX value generally indicates a higher perceived risk in the market.

Leading the gainers' list is Hero MotoCorp, with a nearly 3% uptick from its previous close. Following suit are Tata Steel (2.33%), Bharat Electronics (2.08%), IndusInd Bank (1.85%), and Hindalco Industries (1.85%).

Amongst the losers, Power Grid (-1.15%), NTPC Limited (-0.85%) and HDFC Bank (-0.59%) dragged the Nifty 50 pack down.

Technically, on daily charts, the market is holding a lower top formation, and on weekly charts, it has formed a bearish candle. Additionally, the market is comfortably trading below the 50-day and 20-day Simple Moving Averages (SMA), which is largely negative.

"We believe that the short-term market outlook is weakening; however, a fresh selloff is possible only if the 24,500/80400 level is broken below. If that happens, the market could slip to around 24,350/80200," said Shrikant Chouhan, Head Equity Research, Kotak Securities.

For Bank Nifty, as long as it remains below 56,100, a weak formation is likely to persist, he said. A decline below this level could see it slipping to 55,000–54,700. On the higher side, if it crosses above 56,100, it could bounce back toward the 50-day SMA or reach 56,500, with potential resistance at the 20-day SMA around 56,700.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said that in the near-term, the market is in unchartered territory. "A clear direction will emerge on news surrounding the US-India trade deal happening after the next round of trade negotiations. A deal with a tariff of 20% or below will be positive from the market perspective. If this doesn’t happen, and the 25% tariff remains, the market is likely to drift down since it will impact India’s growth and corporate earnings making it difficult to justify the current elevated valuations."

From the global market perspective, indications are that a rate cut from the Fed in the September FOMC meeting is likely after the latest jobs report indicating declines in job additions in July and downward revisions in the jobs created in May and June. Clearly, the U.S. economy is slowing down and Fed is likely to respond  with a rate cut in September. With the inflationary impact of the tariffs kicking in, a stagflationnary scenario for the US cannot be ruled out. The market will respond to incoming data and evolving outlook, he said.

On the BSE Sensex pack, 22 out of 30 stocks were trading in the green zone, led by BEL, Tata Steel, Bajaj FinServ, Adani Ports, and Asian Paints.

On the other hand, Infosys, Tech Mahindra, HCL Tech, Eternal (Zomato), and Power Grid were among the top losers.

Indian share market opened tad higher on Monday, tracking mixed cues from Asian peers. The BSE Sensex gained 165 points to 80,765, and the NSE Nifty rose 62 points to 24,625.

Foreign portfolio investment (FPI) has been relentlessly selling Indian stocks, offloading equities worth ₹31,988 crore through the exchanges in July. On a year-to-date basis, they sold equities worth ₹1,31,876 crore. However, the FPI strategy of buying through the primary market continued in July also with a monthly buy figure of ₹14,247 crores. This takes the total investment of FPIs through the primary market for 2025 to ₹36,235 crore, as per NSDL data.

This is a steady trend reflecting the FPI preference for fair valuations, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. 

“President Trump’s tariff tantrums imposing 25 percent tariff on Indian goods and an unspecified penalty for trade in energy and defence goods with Russia was unexpected and therefore has impacted market sentiments in the short-term. The sharp appreciation in the dollar index to 100 is another negative which can impact FPI inflows in the near-term,” said VK Vijayakumar.

He said that the market perception is that after the initial chaos there will be a deal between India and U.S. after the next round of negotiations. A steady trend of FPI flows will emerge after the dust settles. 

This week, markets will closely track developments around the India-U.S. trade deal, as policymakers are expected to respond diplomatically ahead of the next scheduled discussions.

At the domestic level, all eyes will be on the Reserve Bank of India’s monetary policy meeting on August 8, where the central bank’s commentary on inflation, liquidity, and growth outlook will be keenly watched. A dovish tilt could offer support to rate-sensitive sectors.

On the earnings front, results from marquee companies including Bharti Airtel, DLF, Bajaj Auto, Hero MotoCorp, Tata Motors, SBI, and LIC of India will shape sectoral momentum.

Other important triggers include the release of the HSBC Services and Investors will also keep an eye on composite PMI, updates on monsoon progress, crude oil price movement, and further commentary from the U.S. on trade negotiations - all of which are likely to influence near-term volatility.

The market may see stock-specific reactions as some big companies such as ITC, Tata Power, Delhivery, Federal Bank, LIC Housing Finance, MCX, and others release their June quarter results post market hours on Friday.

Besides, DLF, Tata Investment Corp, Marico, Aurobindo Pharma, Siemens, and many others are set to release their earnings reports today.

Share markets in Asia-Pacific region witnessed mixed trade today, with Japan, Indonesia, Australia, and Taiwan reeling under selling pressure, while other major regional indices were trading in the green zone.

Japan’s Nikkei 225 was the worst performer in the region with a 1.7% loss due to stronger yen after Bank of Japan's recent decision to keep interest rates steady and U.S. economic jitters.

Taiwan’s Weighted Index, Australia’s ASX 200, and Indonesia’ Jakarta Composite declined between 0.8% to 0.2%.

On the other hand, Hong Kong’s Hang Seng traded flat, while China’s Shanghai Composite rose up to 0.15% in the opening trade. Among others, Singapore’s Straits Times and South Korea’s KOSPI gained around 0.8%.

The BSE Sensex and NSE Nifty are expected to open higher on Monday, tracking mixed cues from Asian peers, amid persistent concerns about trade tensions after the U.S. imposed new tariffs on dozens of countries, including India.

Adding to this, sustained foreign fund outflows and weak global cues in the backdrop of disappointing U.S. jobs data, which dimmed hopes for a potential interest rate cut by the U.S. Federal Reserve next month, are likely to weigh on market sentiment.

Last week, the BSE benchmark Sensex and NSE Nifty50 declined 1% each to settle at 80,599 and 24,565, respectively, extending their losing streak for the fifth consecutive week.