RBI Holds Repo at 5.25%; Markets Stay Range-Bound as Softer Crude Lifts Metal & Auto - Paper by Pocketful
Market Recap: 05th August, 2026
Stock News Highlights
MCX (-3.04%): Shares fell as Q1 net profit declined 22% QoQ to ₹413 crore, with revenue dropping 21% to ₹702 crore and EBITDA falling 26% to ₹494 crore, reflecting weaker commodity trading volumes and margin contraction.
Kalyan Jewellers (-3.70%): Shares fell despite reporting a 32% YoY rise in Q1 net profit to ₹349 crore and a 46% increase in revenue to ₹10,589 crore, as investors reacted to margin pressure from higher gold exchange volumes and promotional offers.
ASK Automotive (+15.64%): Shares surged after the company reported a 29% YoY rise in Q1 consolidated net profit to ₹85.1 crore, while standalone total income increased to ₹999 crore and EBITDA improved on the back of its exit from the low-margin wheel assembly business, boosting margin expectations.
Cummins India (-1.98%): Shares declined despite reporting Q1 FY27 consolidated net profit of ₹609 crore on total income of ₹3,563 crore, as investors reacted to the resignation of Managing Director Shveta Arya, raising concerns over leadership transition.
Sectoral Performance
Nifty Metal (+1.72%): The index emerged as the top sectoral gainer, led by Hindalco, JSW Steel, and Tata Steel, as positive global risk appetite, gains across Asian markets, and improved sentiment after the RBI kept the repo rate unchanged at 5.25% boosted buying in metal stocks.
Nifty Auto (+1.27%): The index advanced with all 15 constituents trading in the green, driven by positive global risk appetite, gains across Asian markets, and improved sentiment after the Reserve Bank of India kept interest rates unchanged, boosting buying across the auto sector.
Nifty Media (-1.58%): The index declined after the previous session’s sharp rally, as profit booking in Zee Entertainment, PVR Inox, and Sun TV Network weighed on the sector, with investors locking in gains following recent outperformance.
Nifty Private Bank (-0.42%): The index declined marginally, dragged by HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, as profit booking in heavyweight lenders outweighed broader market strength despite the RBI keeping interest rates unchanged.
Market Insights
Technical Level: Nifty opened with a gap-up and touched the day’s high near 24,670, which acted as immediate resistance. The index then witnessed steady selling pressure through most of the session, slipping to form support around 24,500. Late buying emerged near this level, helping the index recover some losses and close above the day’s low, indicating support-based buying.
Advance-Decline Ratio: Market breadth remained positive, with 1,972 stocks advancing against 1,394 declining, reflecting broader buying interest across the market.
The Big Picture: Global sentiment improved after President Donald Trump signaled progress in U.S.-Iran talks, raising hopes of the Strait of Hormuz reopening. The easing geopolitical tensions pushed oil prices lower and supported equity markets, although Brent traded around $80 per barrel.
FII/DII Activity (August 5, 2026): DIIs bought ₹2,883 crore, while FIIs sold ₹943 crore, reflecting continued domestic support despite foreign selling.
Watch Out For Tomorrow
Market Watch: Markets remained range-bound after the RBI kept the repo rate unchanged at 5.25%, while softer crude prices below $80 boosted sentiment. Metal and Auto stocks outperformed on expectations of lower input costs, with investors also awaiting key earnings from Trent, Hero MotoCorp, LIC, Motherson, and Britannia.
5-Day Course
Theme: Basics of Commodity Trading
Day 5 - Building a Professional Trading Approach
Consistent traders focus on discipline, strategy, and emotional control instead of reacting to every market move.
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Example:
Entering trades only after confirmation signals
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Word of the day
Conviction
Meaning: Strong belief or confidence in a decision, investment, or market view.
Market Example:
Investors showed strong conviction in metal and auto stocks after the RBI maintained rates and crude oil prices eased.
Simple Definition:
Confidence backed by research and belief in an investment decision.