Mumbai: Indian financial markets remained cautious on 3 August 2026 as investors looked ahead to the Reserve Bank of India’s monetary policy announcement. Market sentiment was influenced by global uncertainties, including tensions in the Middle East and movements in crude oil prices.
The Indian rupee posted one of its strongest weekly gains in recent months, supported by RBI interventions and healthy foreign currency inflows. However, bond yields continued to remain under pressure after Bloomberg deferred the inclusion of Indian government bonds in its Global Aggregate Index.
Analysts expect the RBI to maintain the repo rate while closely monitoring inflation and global developments. Investors are also keeping an eye on PMI data and other economic indicators scheduled for release during the week.
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