Key Market Insights - Altifi Weekly Bulletin | 07 August 2026

Economy and regulatory updates

• The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25%, raised its gross domestic product (GDP) growth forecast for fiscal 2027 to 6.7% from 6.6% earlier and lowered its inflation projection to 5.0% from 5.1%, signalling confidence in the domestic economy’s resilience, despite global uncertainties.

• India’s gross goods and services tax collections rose 15.4% on-year to Rs 2.11 lakh crore in July 2026, compared with Rs 1.83 lakh crore in July 2025.

• India manufacturing Purchasing Managers’ Index (PMI) eased to 53.5 in July 2026 from 54.2 in June 2026, while services PMI fell to 53.3 from 57.4.

• The Union Cabinet has approved GOBARdhan (National Circular Bioenergy Scheme), with an outlay of Rs 23,731 crore, to promote bioenergy production, waste management and circular economy initiatives.

• The RBI has allowed banks to link bulk deposit rates to their liquidity position under the Liquidity Coverage Ratio framework, providing greater flexibility in deposit pricing.

• The Securities and Exchange Board of India (SEBI) has proposed simplifying disclosure requirements for offshore funds by extending disclosure timelines for new investors and increasing reporting thresholds for investor-level information, to attract more long-term foreign investment into India.

• The SEBI has clarified that the off-market sale of unlisted shares to up to 200 identified buyers will not be treated as a public issue, providing greater regulatory clarity for private share transactions in unlisted companies.

• The SEBI has proposed allowing real estate investment trusts and infrastructure investment trusts to invest in under-construction projects, a move aimed at creating a stronger pipeline of revenue-generating assets and boosting long-term growth opportunities for these investment vehicles.

Source: MOSPI, RBI

Indian debt market update

• The interbank call money rate ended lower at 5.10% in the week ended August 7, compared with 5.35% in the week ended July 31.

• The yield on the 10-year benchmark 6.94% 2036 paper closed at 6.77% in the week ended August 7 vs 6.83% in the week ended July 31, 2026, supported by the MPC’s decision to maintain the repo rate at 5.25% and easing concerns over inflation following a decline in crude oil prices.

• The yield fell tracking the MPC’s decision on August 5 to keep the repo rate unchanged, while the central bank’s emphasis on maintaining adequate liquidity also provided comfort to the bond market. Softer crude oil prices during the week further eased concerns over imported inflation, which also led to a decline in bond yield.

• The RBI's upward revision of its GDP growth forecast, and downward revision to its inflation projection, for this fiscal, supported the fall in yields as well.

• However, the fall in yields was limited by the earlier disappointment over the deferment of India's inclusion in the Bloomberg Global Aggregate Index and continued selling in Indian bonds by foreign investors.

Source: CRISIL Fixed Income Database, ^ Data as of 31st Jul 2026 vs 24th Jul 2026 vs 26th Jun 2026 respectively

Source: CRISIL Fixed Income Database

Indian equity market updates

• Indian equities ended marginally higher for the week, supported by a sharp decline in crude oil prices, optimism over a potential US-Iran peace deal, and stronger-than-expected earnings for the first quarter of fiscal 2027. Additionally, positive cues from the RBI's policy stance, including its growth and inflation outlook, reinforced confidence in the economy. However, profit-booking limited the gains. The BSE Sensex and Nifty 50 gained 0.52% and 0.77%, respectively.

• Sectoral performance was mostly positive during the week. The BSE Metal, BSE Capital Goods (CG) and BSE Auto indices emerged as the top gainers, advancing 2.97%, 2.95%, and 2.86%, respectively, supported by sector-specific buying and optimism surrounding the ongoing earnings season.

• On the other hand, the BSE Realty, BSE Oil & Gas and BSE Consumer Durables (CD) indices declined 1.74%, 0.51%, and 0.27%, respectively, amid profit-booking.

• Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 7,767.37 crore, while Foreign Institutional Investors (FIIs) saw net inflows of Rs 2,887.69 crore.

• MTD trend: DIIs reported net inflows of Rs 7767.37 crore, whereas FIIs registered net inflows of Rs 2887.69 crore.

• YTD positioning: DIIs remained net buyers at Rs 5,05,451.32 crore, while FIIs remain net sellers at Rs 3,41,179.42 crore.

Source: BSE, NSE

Source: SEBI, NSE, NSDL

Global Equity market summary

• US stocks ended higher during this week, supported by positive earnings from artificial intelligence (AI)-related companies and as unexpected drop in nonfarm payrolls numbers for July month, which dampened expectations that the Federal Reserve (Fed) would raise interest rates at its September meeting.

• Britain's FTSE index ended the week higher, due to gains in metal and mining stocks amid softer global crude oil prices. However, the index declined earlier in the week tracking a fall in banking stocks following reports of offshore policy income tax scrutiny in China.

• Japan's Nikkei ended higher during the week as gains in technology and AI-related stocks, strong corporate earnings and easing geopolitical concerns lifted sentiment, helping the market overcome pressure from a stronger yen and intermittent weakness in chip-related shares.

• Hong Kong's Hang Seng Index ended lower during the week as losses in insurance stocks weighed on sentiment following reports that Chinese authorities were levying taxes on offshore insurance policy income. However, optimism around AI, easing West Asia conflict, stronger Chinese trade data for July and an improving earnings outlook limited the losses.

• China’s Shanghai Composite Index ended the week higher, supported by gains in chip-making and AI-related shares, as stronger-than-expected July trade data boosted confidence in export resilience.

Source: Websites of respective stock exchanges

Global Yield

• The 10-year US Treasury yield declined modestly during the week as easing crude oil prices eased concerns over inflationary pressures, while investors continued to assess the Federal Reserve's interest rate outlook.

• The fall in the yield was driven largely by a sharp fall in oil prices amid signs of easing West Asia conflict, which lowered concerns that prolonged supply disruptions could keep inflation elevated and increase pressure on the Fed to raise rates.

• Meanwhile, the Fed's decision to keep its policy rate unchanged at 3.50- 3.75% at its July 29 meeting, despite three policymakers favouring a rate hike, kept the outlook for September policy uncertain. Towards the end of the week, yields edged higher as investors adopted a cautious stance ahead of the US employment data for July month.

• The US 10-year Treasury yield ended lower at 4.65% on August 7, compared with 4.75% on July 31.

Source: Financial Websites

Commodities and Currency

• Crude oil prices declined during the week on the NYMEX closing to $78.18 per barrel on August 7, 2026, compared with $84.67 per barrel on July 31, 2026, as renewed hopes of a diplomatic resolution in West Asia eased concerns over prolonged supply disruption. Expectations of stable oil flows through the Strait of Hormuz further reduced supply-related risks, which weighed on prices.

• Gold prices rose to Rs 1,49,621 per 10 gram as of August 7 from Rs 1,42,860 per 10 grams as of July 31, because of haven demand.

• Silver prices also rose to Rs 2,31,381 per kg on August 7 compared with Rs 2,18,295 per kg on July 31, tracking gains in gold prices, driven by haven demand and industrial demand.

• The rupee ended higher at Rs 95.21 against the US dollar on a weekly basis, supported by likely RBI intervention, lower crude oil prices earlier in the week and steady foreign fund inflows, which helped offset pressure from dollar demand among importers.

• However, geopolitical uncertainties and intermittent demand for the greenback limited the appreciation in the Indian currency.

Source: Respective commodity exchanges, ibjarates.com

Source: RBI Reference Rate

Global Economic

• US S&P Global Manufacturing PMI edged higher to 53.9 in July 2026 compared to 53.8 in June 2026.

• Eurozone annual inflation accelerated to 2.9% in July 2026, compared to 2.8% in June 2026, while the core inflation rate increased to 2.5% from 2.4%.

• China RatingDog Manufacturing PMI declined to 50.9 in July 2026 compared to 51.7 in June 2026.

• The Bank of Japan (BoJ) kept its short-term policy interest rate unchanged at 1.0% at its July 2026 meeting, after a 25-bps hike in June 2026.

Source: Financial Websites

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