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Indian Stocks Defy Global Cues, Surge Ahead of RBI Policy
4 Aug
Summary
- Indian markets gain over 0.5% despite weak global cues
- Metal and defense stocks outperform, rising over 2.5%
- Rupee weakens, gold prices surge amid US jobs data disappointment
On August 4th, 2025, the Indian equity markets closed firmly higher, shrugging off weak global cues ahead of the Reserve Bank of India's policy announcement later this week. The Nifty 50 gained 157.40 points or 0.64% to settle at 24,722.75, while the Sensex advanced 418.81 points or 0.52% to close at 81,018.72.
The benchmark indices opened on a positive note despite overnight weakness in US markets, and maintained their upward trajectory throughout the session. The metal and defense sectors emerged as the top performers, gaining over 2.5%, while financial, realty, auto, and IT indexes were also up over 1.5%.
The broader markets also participated in the rally, with the Nifty Midcap 100 surging 1.40% and the Nifty Next 50 gaining 1.09%. Leading the gainers on the Nifty 50 were Hero MotoCorp, Tata Steel, and Adani Ports.
The currency markets, however, witnessed continued pressure on the rupee, which weakened to close at 87.68 against the US dollar. This, coupled with disappointing US Non-Farm Payroll data, also led to a significant surge in gold prices, which rose by ₹750 to ₹1,00,550.
Analysts remain cautiously optimistic about the market's short-term outlook, with key support levels identified at 24,550/80,600 and 24,500/80,500, and resistance expected at 24,850-24,950/81,500-81,800. Investors are now eagerly awaiting the RBI's monetary policy announcement on Wednesday, which is expected to drive heightened volatility in the markets.
