Equities Extend gains as Oil Slumps; Rupee Steady, Bonds Range-Bound

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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India Shares rise

Dehuti Jani

Tresha Dias

August 3, 2026 at 12:30 PM IST

Indian equity benchmarks extended gains for the fourth straight session on Monday as a sharp decline in crude oil prices following reports of renewed US-Iran talks boosted risk appetite and eased concerns over inflation. The Sensex rose 544.39 points or 0.70% to 78,639.03, while the Nifty50 gained 391.00 points or 1.60% to 24,774.30, closing at a fresh high under the new Closing Auction Session (CAS) framework.

Sentiment improved after Brent crude oil tumbled 5.1% to around $83.40 per barrel after US President Donald Trump said talks with Iran would take place on Monday and called off a planned military strike, raising hopes of easing tensions around the Strait of Hormuz. Lower oil prices, combined with a recovery in foreign portfolio inflows and a firmer rupee supported the market, although elevated US Treasury yields continued to remain a key risk for emerging-market flows.

InterGlobe Aviation, Infosys and Tata Consultancy Services were the top gainers on the Nifty50. IT, FMCG and PSU Bank stocks led the rally, while the Media index was the only major sectoral laggard. Broader markets also participated, with the Nifty MidCap and Nifty SmallCap indices rising 1.21% and 1.29%, respectively.

The Indian rupee ended little changed at 95.3375 per US dollar after giving up gains from a three-week high of 95.1275 hit earlier in the session. The sharp fall in crude oil prices supported the currency initially, but importer demand and dollar purchases by state-run banks limited further appreciation.

Indian government bonds traded in a narrow range as investors awaited the Reserve Bank of India's monetary policy decision later this week. The benchmark 6.94%, 2036 bond yield ended at 6.8343% unchanged from previous close. Dealers said state-owned banks continued buying around the 6.83%-6.84% yield levels, while shorter-tenure bonds outperformed after stronger-than-expected inflows into the RBI's FCNR(B) swap facility improved liquidity expectations.

Top Movers of the day

ITC rose about 2% to around ₹286.45, after its June-quarter results and positive brokerage commentary offset a decline in standalone profit.

Bajaj Finserv climbed 3% to ₹2,082.90 after reporting a 12% year-on-year rise in Q1 FY27 net profit to ₹31.32 billion, while Motilal Oswal upgraded the stock to 'Buy' on strength across its lending, insurance and asset management businesses.

IDFC First Bankrose marginally 0.05% to ₹84.72, after posting a record quarterly profit of ₹10.75 billion, supported by strong net interest income, margins and asset quality.

DCB Bank jumped 3% to around ₹191.40, as investors accumulated smaller private banks amid improving earnings expectations.

AU Small Finance Bank gained to around ₹1,048.50, after Q1 net profit rose 37% year-on-year to ₹7.96 billion, while net interest income increased 32%.

Dr Lal PathLabs ended marginally down at the end of the trade by 0.02% to around ₹1,904.90, despite June-quarter earnings exceeding estimates.

Sterlite Technologies added about 5% to around ₹584.90, after CLSA upgraded the stock to 'Outperform', citing strong quarterly earnings and an improving growth outlook.

HFCL jumped 3% to ₹201, after securing an international order worth ₹52.27 billion, extending gains on optimism over telecom equipment and defence-related business prospects.

Zee Entertainment Enterprises plunged more than 14% to ₹97.90 after SEBI barred founder Subhash Chandra and CEO Punit Goenka for one year in the unauthorised property pledge case, triggering heavy selling on governance concerns.

ONGC declined about 1% to ₹240.80 as lower crude oil prices weighed on the earnings outlook for upstream oil producers, prompting profit booking in the stock.

Futures & Options
The Nifty August 2026 futures contract settled at 24,664.90, a discount of 109.40 points to the Nifty 50 cash index, which climbed 390.70 points, or 1.60%, to close at 24,774.30. The discount suggested traders remained cautious about the near-term outlook despite the sharp rally in the cash market.

Market volatility edged higher, with the NSE India VIX rising 1.91% to 11.98. Infosys, Muthoot Finance and Maruti Suzuki India were the most actively traded individual stock futures contracts on the NSE. The August 2026 F&O series expires on Aug. 25, 2026.

Bonds
Indian government bonds traded in a narrow range as investors await the Reserve Bank of India's monetary policy decision later this week. The benchmark 6.94%, 2036 GS yield ended flat unchanged from 6.8343% at the previous close. Dealers said state-owned banks continued buying the benchmark bond around the 6.83%-6.84% yield level. Shorter-tenure bonds outperformed after stronger-than-expected inflows into the RBI's FCNR(B) swap facility improved liquidity expectations.

Forex
The Indian rupee ended little changed on Monday after retreating from a three-week high hit earlier in the session, as importer dollar demand and purchases by state-run banks offset support from sharply lower crude oil prices. The rupee rose to an intraday high of 95.1275 per US dollar after Brent crude prices fell on hopes of renewed US-Iran talks, but pared gains to close at 95.3375, compared with 95.38 in the previous session.

Market sentiment improved after US President Donald Trump called off an imminent military strike on Iran in favour of diplomatic talks, with negotiations between Washington and Tehran scheduled for Monday. Domestically, investors are now focused on the Reserve Bank of India's monetary policy decision on Wednesday, where economists widely expect the central bank to keep interest rates unchanged.

Crypto
The Crypto markets traded lower on Monday as investors reduced exposure to risk assets despite easing geopolitical tensions, with Bitcoin slipping below the $63,000 mark amid continued ETF outflows and cautious market sentiment.

Bitcoin traded around $62,567 after briefly touching an intraday high of nearly $63,725, before selling pressure erased gains and pushed the cryptocurrency back towards the day's lows. The decline kept Bitcoin below key near-term support levels, reflecting a cautious tone across digital assets.

Ethereum fell 1.14% over the past 24 hours to around $1,866, underperforming alongside the broader cryptocurrency market, which declined about 1.15%. Traders cited continued selling in major cryptocurrencies, leveraged liquidations and persistent outflows from crypto investment products as key factors weighing on sentiment.

US Stock Futures
US stock futures advanced today as investors welcomed President Donald Trump's decision to call off planned military strikes on Iran, easing geopolitical concerns and driving oil prices sharply lower at the start of the new trading month. Dow Jones futures rose 413 points (0.8%), while S&P 500 futures gained 0.6% and Nasdaq-100 futures advanced 0.4%.

Market sentiment improved after Trump said on Sunday that he had cancelled a planned attack on Iran and that negotiations between Washington and Tehran would resume on Monday. The prospect of renewed diplomacy pushed crude oil prices lower, boosting risk appetite and supporting gains across US equity futures.

US Treasury Notes
Despite today's modest decline, US Treasury yields remained near multi-month highs, continuing to pose a risk to emerging-market capital flows. The benchmark 10-year Treasury yield slipped to around 4.68%, while the policy-sensitive 2-year Treasury yield declined to 4.24%. The 30-year Treasury yield also eased to about 5.22%.

Bond prices gained after President Donald Trump called off planned military strikes on Iran and confirmed that talks between Washington and Tehran would resume, triggering a sharp fall in crude oil prices. Investors are now focused on a busy week of US economic data, culminating in Friday's non-farm payrolls report, for fresh clues on the Federal Reserve's interest rate path.

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