The Indian Stock Markets in the foregone week has shown resilience with gains over 2 per cent. Last week, stock market witnessed a strong recovery with the Sensex gained 2,034.87 points, or 2.67 percent, while the NSE Nifty advanced 616.15 points, or 2.59 percent.
M recent losing streak as softer crude oil prices, improving geopolitical developments, robust Q1 FY27 earnings, and fresh buying by foreign institutional investors (FIIs) boosted investor sentiment.
The upcoming week (Aug 3 to Aug 7) will be mainly driven by the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) announcements on the rates and firmly focused on geopolitical developments in the Middle East.
RBI MPC:
The Reserve Bank of India will meet over three days from August 3 to 5, 2026 to discuss and deliberate on the policy decision. Governor Sanjay Malhotra will share the decisions on August 5.
Foreign investors:
The foreign investors have turned buyers into the Indian mid and small cap stocks.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited 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 crores, 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.
Upcoming Q1 Results:
The week will also witness key quarterly results. Major marquee companies like Bharti Airtel, Indian Renewable Energy Development Agency, FSN E-Commerce Ventures Nykaa, Oil and Natural Gas Corporation, Life Insurance Corporation of India, State Bank of India, Delhivery are scheduled to release their results.
Crude oil prices:
On Friday, the crude oil prices ended higher by over $1 per barrel. Brent crude futures climbed $1.09, or 1.2%, to settle at $90.12 per barrel, while US West Texas Intermediate (WTI) crude rose $1.08, or 1.3%, to close at $84.67 per barrel.
Iran War:
The escalating tensions in the West Asia will also be key driver of the stock markets next week.
In the recent development, US President Donald Trump warned of additional strikes on Iran as Washington intensified efforts to reopen the Strait of Hormuz.