Mid‑Day Market Update 6 Aug 2025: RBI Holds Rates, Financials Steady; IT & Exports Lag
By CapitalKeeper | Mid Day | Indian Equities | Market Moves That Matter
Indian markets trade cautiously mid‑day on August 6, 2025. Nifty at 24,614, Bank Nifty rises while Sensex drifts. RBI stays neutral on rates, rate-sensitive sectors weaken, export-linked IT & pharma slide under U.S. tariff scare. Trade levels & sector cues for today’s session.
📊 Mid‑Day Market Update – August 6, 2025
- Nifty 50: Opened at 24,641.35, currently 24,614.95 (–26.40 pts; –0.11%)
- Bank Nifty: From 55,329.80 to 55,462.10 (+132.30 pts; +0.24%)
- Sensex: From 80,694.98 to 80,675.45 (–19.53 pts; –0.02%)
- Fin Nifty: From 26,338.10 to 26,380.65 (+42.55 pts; +0.16%)
Markets opened subdued and traded marginally negative mid‑day, as RBI held policy rates steady and maintained a neutral stance—disappointing some rate-cut hopeful investors.
🧭 Sector-Wise Performance & Noteworthy Stocks
🏦 Financials & Fin Nifty
Banking stocks diverged from broader indices Bank Nifty added 0.2%, while Fin Nifty treaded higher. Top private banks like HDFC and ICICI are steady, though rate-sensitive names like realty and broader financials are under slight pressure.
🛢️ Rate‑Sensitives: Realty, Consumer, Auto
Rate-sensitive sectors such as realty, FMCG, and auto are lagging with realty sliding 2.4%, FMCG and auto 0.9%, following RBI’s neutral stance which underscored limited headroom for cuts this cycle.
💻 IT & Export‑Linked Sectors
Export-facing sectors like IT, pharma, textiles, and auto parts remain under pressure. The U.S. 25% tariff hike on Indian exports continues to cloud demand outlook and margins in these names. Weakness in TCS, Infosys, Sun Pharma, and Trident persist .
🛍️ FMCG & Defensive Plays
Consumer staples show modest correction post recent strong gains. Britannia fell 2% after missing Q1 profit estimates. Meanwhile, telecom major Bharti Airtel gained 1% aided by robust subscriber growth.
📈 Technical Outlook & Key Levels
Nifty 50
- Support: 24,600–24,620
- Resistance: 24,650–24,680
Nifty is consolidating near its session lows. A break below 24,600 could invite further selling toward 24,550–24,500. On the upside, reclaim of 24,650 could signal defence led rotation.
Bank Nifty
- Support: 55,300–55,350
- Resistance: 55,500–55,550
Financials remain resilient—Bank Nifty quietly reclaiming ground above 55,300 signals patient consolidation. A breakout can test fresh near-term highs.
Fin Nifty
- Support: 26,300–26,350
- Resistance: 26,400–26,450
Still holding up amid broader trends, hinting selective strength in lenders and insurers.
🌍 Global & Macro Themes
1. RBI Holds Rates, Maintains Neutral Stance
The central bank delivered no surprise cuts after June’s 50bp move. With inflation at a six-year low (2.1% in June) but escalating global uncertainty, RBI signalled caution rather than rate easing, disappointing markets hoping for immediate dovish confirmation.
2. U.S. Tariffs & Trade Tensions
No breakthrough yet in India–U.S. trade talks. Instead, India avoided a deal, while the U.S. pivoted to agreements with Japan and EU leaving India’s export sectors vulnerable as tariffs kick in from August 7. This continues to weigh heavily on export-driven stocks.
3. Foreign Outflows and Five‑Week Losing Streak
India logged its fifth straight weekly decline as FPIs extended selling. July outflows exceeded ₹17,700 Cr the highest level since February. The long streak of FPI outflows is keeping risk sentiment cautious.
4. Mixed Domestic Indicators
Indian PMI data showed strong private sector expansion in June, but business confidence softened a sign of rising competitive and pricing pressures amid global headwinds. Analysts argue this underpins a case for cautious monetary easing down the line.
🛎️ Intraday Trade Ideas & Watchlist
- Nifty: Any move below 24,600–24,620 could accelerate weakness to the 24,550–24,500 zone. On the upside, strength above 24,650 may invite buying into 24,700–24,750.
- Bank Nifty: A dip toward 55,300–55,350 offers dip-buying opportunity, targeting 55,500–55,550. Failure to hold 55,300 could drag toward 55,000.
- Financials leading—watch for SBI Life, Bandhan Bank, and Kotak stocks.
- Trader Alerts:
- Britannia, Bharti Airtel reacting to earnings misses/plus.
- Export names like Biocon, Sun Pharma, Trident may underperform further on tariff clarity (or lack thereof).
- Auto and realty names vulnerable near-term—profit-booking possible if RBI continues neutral tone.
✅ Mid‑Day Summary
The Indian market has digested a neutral RBI stance amid growing global trade tension. Defensive sectors underpinned, while rate-sensitive and export-exposed names remain under pressure. Technical structure is consolidating—with Nifty around 24,600–24,650 remain key pivot zone. Financial indices show selective stability, but export-heavy sectors continue lagging as trade uncertainty persists. Markets are treading water ahead of important cues: RBI liquidity policy update and developments in India–U.S. trade talks.
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