Indian stock markets are expected to open slightly higher on August 6, 2025, as indicated by Gift Nifty futures trading at 24,699 around 8:15 AM. This comes after domestic equities saw a moderate correction on Tuesday amid heightened global trade tensions and cautious investor sentiment ahead of the RBI policy announcement.
On August 5, benchmark indices ended lower as concerns around rising US-India trade frictions weighed on sentiment. The BSE Sensex fell 308.47 points (0.38%) to close at 80,710.25, while the Nifty 50 declined 73.20 points (0.30%) to settle at 24,649.55.
Geopolitical risk resurfaced after US President Donald Trump declared plans to sharply increase tariffs on Indian exports.
"India is not only buying massive amounts of Russian oil, they are then, for much of the oil purchased, selling it on the open market for big profits," Trump reportedly stated on a social media platform.
The announcement rattled investor confidence, raising fears of escalating trade barriers between the two nations.
All eyes remain on the Reserve Bank of India’s Monetary Policy Committee (MPC), expected to announce its decision on August 6.
Despite limited room for further easing, expectations have shifted towards a dovish tone to support growth amid rising external risks, including the imposition of 25% US tariffs on Indian goods, as per news reports.
Since the June 6 policy meet, the Nifty 50 has lost 1.41%, weighed by subdued corporate earnings and persistent global uncertainties.
Foreign portfolio investors (FPIs) remained net sellers for 12 consecutive sessions through Tuesday, largely in response to trade tensions and weak earnings momentum.
At the same time, domestic institutional investors (DIIs) offloaded shares in 22 sessions, although their activity helped absorb some of the pressure from FPI outflows.
Read More: Adani Ports Share Price in Focus as Gautam Adani Steps Down as Executive Chairman.
Indian markets may continue to experience short-term volatility as geopolitical and trade developments unfold. While Gift Nifty indicates a slightly positive start, investor focus will be on the RBI’s policy stance and global risk cues.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 6, 2025, 8:31 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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