Global Risk Sentiment Improved As Investors Weighed Geopolitical Developments and Steady US Monetary Policy

Indian equity markets are set to pivot on the Reserve Bank of India's Monetary Policy Committee meeting, the ongoing Q1 FY27 earnings season, and global cues this week, with investors parsing management commentary, macroeconomic data, and geopolitical events for direction. Last week, benchmark indices staged a strong recovery, buoyed by easing geopolitical tensions, lower crude prices, renewed foreign institutional buying, and encouraging corporate earnings. Brent crude retreated significantly after briefly crossing $100 per barrel, following a temporary pause in US-Iran hostilities that raised hopes of a diplomatic resolution.

Global risk sentiment improved as investors weighed geopolitical developments and steady US monetary policy. Domestically, stock-specific action remained robust, while renewed FII buying and a nearly 16% drop in India VIX supported sentiment. The Nifty advanced 2.59% to close at 24,383.60, and the Sensex gained 2.68% to settle at 78,094.64, marking the second consecutive monthly gain for both indices in July.

On the macro front, market participants will watch July Composite PMI and GST collection data for signals on domestic economic strength. Globally, developments surrounding the US-Iran conflict, crude supply stability through key shipping routes, and evolving US monetary policy expectations will continue to influence sentiment. Trading timings change from Monday, August 3, under SEBI's revised framework, introducing a Closing Auction Session for F&O-eligible stocks.

Regular trading will run until 3:15 pm, followed by a transition period, with CAS Order Entry I from 3:20-3:25 pm and CAS Order Entry II from 3:25-3:30 pm. MRPL stock shows bullish potential; buy at ₹169 with a target of ₹250 and strategic stop-loss adjustments.