Daily Market Update - 5th August 2026 by Ventura Securities Ltd
Market Outlook:
Indian equity markets are expected to open on a positive note, with Gift Nifty gaining 0.7%, supported by strong overnight global cues. US markets ended higher, reflecting improved investor sentiment, while domestic indices also closed in positive territory. Market breadth remained healthy, with the NSE advance-decline ratio at 2,067:1,242, indicating broad-based participation across sectors. The positive global backdrop, coupled with resilient domestic participation, is expected to keep sentiment constructive, although investors will continue to monitor the ongoing earnings season and macroeconomic developments.
FII and DII Activity:
Institutional activity remained supportive during the previous trading session. Foreign Institutional Investors (FIIs) turned marginal net buyers, recording net inflows of approximately ?277 crore, while Domestic Institutional Investors (DIIs) continued their strong buying momentum with net purchases of nearly ?2,260 crore. Sustained domestic institutional participation, along with the return of FII buying, reinforces confidence in Indian equities and provides a supportive foundation for the market despite intermittent global volatility.
Sector Activity:
Sectoral performance remained mixed with buying concentrated in automobiles, financials, energy, and infrastructure. Nifty Auto emerged as the top-performing sector, advancing 1.64%, followed by Financial Services (+1.31%), Energy (+0.87%), Infrastructure (+0.69%), and Pharma (+0.66%). Stocks such as Bajaj Finance, Hyundai Motor India, Ashok Leyland, GAIL, and Sun Pharma led the gains. On the other hand, Nifty IT (-1.56%) and FMCG (-1.08%) witnessed profit booking, with TCS, Varun Beverages, Pidilite Industries, and LTIMindtree weighing on their respective sectors. Overall, sectoral rotation continues to favor domestic cyclicals while investors remain selective in technology and consumer names.
Long, Short, Long Unwinding & Short Covering:
Derivative positioning continues to indicate a constructive market setup. The Nifty Put-Call Ratio (PCR) stood at 1.07, suggesting a bullish bias supported by stronger put writing, while the Bank Nifty PCR was 0.79, reflecting balanced positioning in the banking segment. Maximum Call Open Interest for Nifty was concentrated at the 24,000 strike, whereas maximum Put Open Interest stood at 24,600, indicating a favorable support zone. In the Sensex, both maximum Call and Put Open Interest remained at the 78,000 strike. There were no stocks under the F&O ban list, indicating normal activity across the derivatives market.
Top 5 News Highlights:
Bajaj Finance rallied over 8%, emerging as the top performer after reporting strong quarterly earnings.
Hyundai Motor India gained more than 8%, supported by healthy operational performance and strong investor interest.
Ashok Leyland advanced over 4%, leading gains in the Auto sector.
GAIL climbed over 4%, driving strength in the Oil & Gas space.
Century Plyboards remained in focus after delivering a strong operational performance, supported by improving demand and healthy margin expansion.
Overall, encouraging global cues, sustained DII buying, improving FII participation, and healthy market breadth provide a constructive backdrop for Indian equities. Investors should remain selective, focus on quality companies reporting strong earnings, and continue tracking institutional flows and global developments for further market direction.
SMS subject to Disclosures and Disclaimer goo.gl/8bCMyQ
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