Indian equity benchmarks started August on a firm footing. On August 3, 2026, the BSE Sensex surged 788 points and the Nifty 50 traded above 24,550, with broad-based gains across sectoral indices. The rally extended a positive start to the month after a softer previous week.
By the closing bell on August 3, the Nifty 50 was up about 1.6% and the Sensex around 0.7%, according to market trackers. On August 4 the indices saw mild profit-taking — the Nifty slipped about 0.64% and the Sensex 0.27% — before steadying.
What drove the move:
– Crude oil: Prices fell as much as 6% after US President Donald Trump signalled that peace talks with Iran could resume, easing supply-risk premia. Lower crude is positive for India’s import bill and inflation.
– Market breadth: On August 3, more than 2,200 stocks advanced on the NSE against roughly 450 declining — a firmly bullish session.
– Sector action: Nifty Auto, FMCG, Metal, IT and PSU Bank indices all traded higher; only Pharma lagged.
The Indian rupee also opened stronger, gaining about 0.25% to around 95.14 per US dollar.
Analysts urged caution. “Supportive derivatives positioning and easing crude provide a constructive backdrop, but event risks — including the RBI’s monetary policy decision and geopolitical developments — are likely to keep investors cautious,” noted a SEBI-registered research analyst quoted by India TV News. A stock-specific approach with disciplined risk management remains the preferred strategy, they added.
Investors should avoid chasing momentum and instead focus on fundamentally strong companies, particularly given the RBI policy meeting concluded August 5.
Sources: Kotak Neo, India TV News and Dhan market updates.