Pre-Market Report: Strong Gap-Up Expected as Global Markets Rally on Geopolitical Hopes — August 5, 2026

Global Market Cues

The global sentiment turned sharply positive overnight as Wall Street indices witnessed a massive rebound. The Dow Jones surged 1.71%, the Nasdaq Composite jumped 2.59%, and the S&P 500 hit a new record high, closing up 1.79% at 7,736.49. The rally was primarily driven by a resurgence in AI-themed technology stocks and optimistic signals from US Treasury Secretary Scott Bessent regarding a potential deal to reopen the Strait of Hormuz, which could significantly ease geopolitical tensions in West Asia.

In Asia, markets followed the US lead this morning:

• Japan’s Nikkei 225 soared by 3.0%, recovering from previous volatility.
• South Korea’s Kospi gained 3.3% in early trade.
• Brent crude oil prices have slipped below the $80-per-barrel mark, trading near $79.16, providing a favorable backdrop for oil-importing economies like India.

GIFT Nifty and Domestic Cues

GIFT Nifty is signaling a strong gap-up for the Indian domestic indices. As of 7:30 AM IST, GIFT Nifty was trading around 24,771, up by approximately 190 points or 0.78% compared to the Nifty 50’s Tuesday close of 24,614. This suggests that the Nifty 50 could open well above the 24,750 mark, potentially testing the immediate resistance zone of 24,800–24,850.

On the domestic front, all eyes are on the Reserve Bank of India (RBI). The Monetary Policy Committee (MPC) is expected to announce its interest rate decision today. While most analysts expect a status quo on rates, the commentary on inflation and liquidity will be critical for banking and financial stocks.

Key Stocks in Focus

Several companies will see significant price action today due to quarterly earnings and corporate developments:

• KEI Industries: Reported a strong 40% YoY jump in Q1 net profit to ₹2.74 billion, with revenue growing 23%.
• GE Shipping: Profit surged to ₹13.09 billion from ₹5.05 billion YoY, with EBITDA margins expanding significantly to 66.7%.
• UPL: Reported a 10.5% YoY rise in revenue despite a 3% decline in volumes, aided by better realizations.
• Greaves Cotton: In focus after reporting a 31% YoY increase in consolidated revenue for the June quarter.
• Earnings Today: A heavy slate of companies including Aurobindo Pharma, Biocon, Berger Paints, Cummins India, and Aster DM Healthcare are scheduled to report their Q1 results today.

Key Events to Watch Today

Investors should keep a close watch on the following data releases and events:

• RBI Monetary Policy Verdict: The rate decision and Governor Shaktikanta Das's speech (mid-morning).
• US ISM Services PMI: Monthly data release which will provide insights into the health of the US services sector.
• US ADP National Employment Report: A precursor to the official labor market data, expected to influence Fed rate hike expectations.
• Corporate Earnings: Over 350 companies are expected to report results this week, with a significant number slated for today.

TAGS: Pre-Market, Stock Market, Nifty, Sensex, Market Update

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