Mid‑Day Market Update 5 Aug 2025: Nifty Rebounds Amid Auto Rally; IT Stays Weak
By CapitalKeeper | Mid Day | Indian Equities | Market Moves That Matter
Indian equities rebound mid‑day on August 5, 2025: Nifty climbs 0.5%, Sensex up 240 pts. Auto & metals rally; Bank Nifty consolidates near 55,600. Export-linked IT and pharma slip on trade concerns. RBI policy in focus. Read sector breakdowns and technical outlook.
📊 Mid‑Day Index Snapshot (Aug 4)
- Nifty 50: Opened at 24,596.05, now at 24,719.85 (+123.80 pts / +0.50%)
- Bank Nifty: At 55,557.50, unchanged on the session (flat)
- Sensex: Rose from 80,765.83 to 81,005.50 (+239.67 pts / +0.30%)
- Fin Nifty: Gradually recovered to 26,511.15 from 26,507.20 (+3.95 pts / +0.02%)
Markets are steadying after an earlier dip buying notable in auto, metals, and selective cyclicals.
🔍 Sector-Wise Highlights
🚗 Auto & Metals
Auto and metal stocks led today’s gains: Hero MotoCorp, TVS, JSW Steel advanced 1–2% after healthy July sales data and positive global flow into cyclicals.
🏦 Financials / Fin Nifty
The financial sector is consolidating; Bank Nifty remains anchored in 55,500–55,600. With RBI policy due this week, traders await clarity on interest rate guidance.
🧑💻 IT & Export-Linked Names
Exporters including IT and pharma continue under pressure following Trump’s tariff warning. The 25% levies on Indian goods have dented investor sentiment toward these defensive export names.
🛒 FMCG & Defensive Picks
HUL jumped 4% on encouraging Q1 earnings and strong domestic demand outlook. FMCG indices are outperforming, offering a defensive hedge amid volatility.
📈 Technical Watchpoints
- Nifty support has moved to 24,650–24,670, with resistance at 24,750–24,800.
- Bank Nifty remains in a tight trade between 55,500–55,650. A reclaim above 55,650 may trigger resumption of uptrend.
- Fin Nifty is consolidating; 26,450–26,550 is key support, while 26,600–26,650 may act as short-term resistance.
🌍 Market Drivers & Macro Context
- Five Straight Weekly Losses Ended
India marked its fifth consecutive weekly drop the longest stretch in 2 years. Today’s resumption of gains provides respite, but underlying risk-off bias remains intact. - Trump Tariff Warning Weighs
Renewed threats from President Trump over U.S. sanctions on India’s oil imports raised export risk. Nifty dropped beneath 24,650 before buying returned. - Fed Rate-Cut Expectations Gain Traction
A weak U.S. jobs report has lifted the odds of a September cut to nearly 80%, lending support to Asian markets and easing bond market tensions. - RBI Policy Week Ahead
Markets are bracing for the RBI meeting on August 6. Risk remains elevated in export-heavy names unless clarity emerges on rate action or liquidity support. - FII Selling Continues
Foreign funds extended their 10-day selling streak today, prompting caution. Domestic defensive play and mid-cap bargain interest are helping offset pressure.
🔔 Intraday Strategy & Trade Ideas
| Index / Event | Key Support | Resistance Zone | Outlook |
|---|---|---|---|
| Nifty | 24,650–24,670 | 24,750–24,800 | Buy dips toward 24,750 |
| Bank Nifty | 55,500–55,550 | 55,650–55,700 | Directional break above 55,650 |
| Fin Nifty | 26,450 | 26,600–26,650 | Hold above support, watch financial names |
| Auto / Metal focus | — | — | Strong momentum; trade pullbacks |
| Export names (IT, Pharma) | — | — | Continue to monitor downside exposure |
| FMCG / HUL | — | — | Defensive strength intact |
✅ Mid‑Day Summary
After a volatile start tied to U.S. trade threats, Indian markets are stabilizing led by cyclical strength in auto and metal majors, alongside resilient consumer names like HUL. Export-heavy IT and pharma remain soggy. The tug-of-war between potential Fed dovishness and RBI policy direction is shaping intraday flows. Key levels to watch: Nifty 24,650–24,800, Bank Nifty 55,500–55,650, Fin Nifty 26,450–26,650.
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