Equities Edge Higher on Earnings Optimism; Rupee Slips, Bond Yields Ease

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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By Dehuti Jani

August 6, 2026 at 12:28 PM IST

Indian equities benchmark ended marginally higher on Thursday as optimism over a stronger-than-expected June-quarter earnings season and hopes of a diplomatic breakthrough in West Asia supported investor sentiment.

The Sensex rose 374 points, or 0.48%, to 78,954.76, while the Nifty50 gained 11.35 points, or 0.05%, to 24,636.00. The two benchmark indices continued to diverge following the introduction of the new closing auction mechanism for index constituents earlier this week.

Market sentiment improved as Brent crude traded below 80 dollars per barrel on expectations that ongoing US-Iran talks could help restore shipping through the Strait of Hormuz, easing concerns over global energy supplies. Stronger-than-expected corporate earnings also underpinned buying interest.

Reliance Industries, State Bank of India, and Bharat Electronics were the top gainers in the Nifty50. Among sectors, PSU Bank and Chemical stocks outperformed, while Realty, Media, and Auto indices ended lower. In the broader market, the Nifty SmallCap gained 0.48% to scale another record high, while the Nifty MidCap slipped 0.44% after touching an all-time high in the previous session.

The Indian rupee ended marginally weaker at 95.22 per US dollar, compared with 95.1175 in the previous session, as sustained importer hedging demand outweighed support from softer crude oil prices.

Indian government bond yields eased as the positive sentiment following the Reserve Bank of India's policy review and stable crude oil prices encouraged fresh buying. The benchmark 6.94% GS 2036 yield fell to 6.7666% from 6.7722% at the previous close. However, gains at the shorter end of the yield curve were capped after the RBI's variable rate reverse repo auction absorbed surplus liquidity.

Top Movers of the day

Reliance Industries gained 3.20% to ₹1,321.80, leading the Nifty gainers as easing tensions in West Asia and softer crude oil prices improved the macro-outlook. Buying interest firm after report of a potential large-scale US refinery partnership and new retail tie up between Reliance Brands and SKIMS.

Shriram Finance rose 1.43% to ₹1,138.50, supported by a rally in financial stocks as lower bond yields, easing crude prices and expectations of steady credit growth lifted sentiment.

Eternal advanced 1.98% to ₹316.50, extending its recent rally on renewed buying in consumer and platform businesses amid improving risk appetite and lower oil prices.

Bharat Electronics climbed 2.36% to ₹399.20, as defence stocks remained in focus on expectations of sustained government spending and a strong execution pipeline.

Cipla gained 1.04% to ₹1,474.00, supported by defensive buying in healthcare stocks as investors positioned ahead of quarterly earnings and updates on its US business.

HAL surged more than 6% intraday after its FY26 annual report showed an order book of 2.55 trillion rupees, providing revenue visibility for the next seven to eight years.

PB Fintech rose about 1.85% to ₹1,590.00, after Q1 FY27 consolidated net profit jumped 92% year-on-year to 1.63 billion rupees, driven by higher insurance premiums, revenue growth and improved margins.

Power Grid Corporation declined 3.89% to ₹270.80, emerging among the biggest Nifty losers as investors rotated out of defensive utility stocks into higher-beta financial, energy and consumption names.

Hindalco Industries slipped 1.40% to ₹1,025.40, with metal stocks underperforming as commodity-linked counters witnessed profit booking after their recent rally.

NTPC eased 1.32% to ₹348.20, tracking weakness in PSU and utility stocks as investors shifted towards sectors benefiting more directly from the improving risk environment.

ONGC declined 1.26% to ₹237.18, as lower crude oil prices on hopes of progress in Iran-Oman talks and a possible reopening of the Strait of Hormuz weighed on the earnings outlook for upstream oil producers.

Futures & Options
The Nifty August 2026 futures contract closed at 24,738, a premium of 102 points to the Nifty 50 spot index, which ended the session at 24,636, indicating traders maintained a mildly bullish stance despite the subdued move in the cash market. In the cash segment, the Nifty 50 gained 11.35 points, or 0.05%, to close at 24,636.00.

The India VIX, the NSE's gauge of expected near-term market volatility, rose 0.76% to 12.15, reflecting a slight increase in hedging activity. Reliance Industries, HDFC Bank, and State Bank of India were the most actively traded individual stock futures on the NSE during the session. The August 2026 derivatives series is scheduled to expire on 25 August 2026.

Bonds
Indian government bond yields ended marginally lower on Thursday after reversing most of their intraday decline, as selling by state-owned banks and fresh short positions ahead of Friday's gilt auction limited further gains. The yield on the benchmark 6.94%, 2036 government security ended at 6.7666%, compared with 6.7722% at the previous close. The benchmark yield had declined to an intraday low of around 6.76% before trimming gains later in the session.

Traders also built short positions ahead of Friday's government securities auction, adding pressure on the market. The 6.36%, 2031 benchmark bond underperformed after traders placed fresh short bets ahead of the 210 billion rupees supply scheduled at Friday's auction.

Forex
The Indian rupee ended marginally weaker on Thursday as sustained importer hedging demand offset support from softer crude oil prices, limiting gains in the domestic currency. The rupee closed at 95.22 per US dollar, compared with 95.1175 in the previous session.

While lower oil prices provided support to the rupee, traders said importers stepped up hedging activity following the currency's recent recovery, capping further appreciation. Meanwhile, subdued forward premiums kept exporters largely on the sidelines, reducing dollar supply in the market.

Crypto
The Cryptocurrency markets traded cautiously on Thursday as investors awaited further clarity on geopolitical developments in West Asia, with Bitcoin approaching the 65,000-dollar mark while Ethereum held above 1,900 dollars.

Bitcointraded close to 65,000 dollars, Ethereum remained above 1,900 dollars, while XRP stayed under pressure around 1.05 dollars, reflecting a mixed tone across digital assets.

Market sentiment remained subdued as Iran and Oman reportedly moved closer to a framework agreement on commercial shipping through the Strait of Hormuz. However, Iranian Deputy Foreign Minister Kazem Gharibabadi said that any agreement would not necessarily result in the immediate reopening of the strategic waterway, while Iran also denied reports of direct negotiations with the United States, keeping geopolitical uncertainty elevated.

US Stock Futures
US stock futures traded mixed on Thursday as investors assessed another busy round of corporate earnings after the Dow Jones Industrial Average closed at a record high in the previous session. Dow Jones futures gained 178 points (0.33%), while S&P 500 futures rose 0.14%. Nasdaq-100 futures, however, fell 0.48%, reflecting continued pressure on technology stocks.

Market participants are focused on another heavy earnings calendar, with Warner Bros. Discovery scheduled to report before the opening bell, while Airbnb and Lyft are due to announce quarterly results after the market closes.

US Treasury Notes
US Treasury note yields held on to their weekly declines in pre-market trading on Thursday as easing oil prices and softer US labour market data supported demand for government bonds. The benchmark 10-year Treasury yield hovered around 4.627%, while the policy-sensitive 2-year Treasury yield remained near 4.198%.

Bond prices found support after a partial agreement to reopen the Strait of Hormuz helped push crude oil prices lower, easing concerns over energy-driven inflation. Meanwhile, a weaker-than-expected ADP private payrolls report reinforced expectations that the Federal Reserve may not need to tighten monetary policy as aggressively as previously anticipated.

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