RBI MPC Meeting and ₹20,200 Crore FII Inflows May Influence Trading This Week

Indian markets enter the new trading week with attention on the RBI Monetary Policy Committee meeting, June-quarter earnings from large companies, Middle East tensions, crude oil prices, and foreign investor flows. The policy decision is scheduled for August 5, while several index heavyweights are set to announce Q1 FY27 results during the week.

Why the RBI MPC Decision on August 5 Is the Key Domestic Event

The Monetary Policy Committee’s three-day meeting begins on August 3, with the Reserve Bank of India Governor’s statement scheduled for August 5. Traders will track the central bank’s remarks on three areas:

• Inflation trajectory and food price risks
• Economic growth outlook for FY27
• Future path of interest rates

How Indian Markets Closed Last Week

Both benchmark indices snapped their recent losing streak as easing crude oil prices, better geopolitical sentiment, strong April-June corporate earnings, and renewed foreign buying lifted the market.

Both indices also recorded their second straight monthly gain in July.

Which Companies Report Q1 FY27 Earnings This Week?

Corporate results for the April-June quarter will remain a major trigger for stock-specific moves. Large companies scheduled to announce first-quarter FY27 numbers include:

• State Bank of India
• Bharti Airtel
• Oil and Natural Gas Corporation
• Life Insurance Corporation of India
• Marico
• Power Grid Corporation of India
• Trent
• Britannia Industries

FII Flows Turn Positive After Four Consecutive Months of Selling

Foreign institutional investors returned as net buyers of Indian equities in July after four straight months of outflows. They deployed ₹20,200 crore during the month.

The buying came alongside attractive valuations, improving corporate earnings, and easing global headwinds, a combination that shifted sentiment among overseas investors.

How US-Iran Tensions Are Affecting Crude Oil and Market Mood

Global cues remain important as Middle East tensions persist. US President Donald Trump called off additional strikes on Iran while Washington stepped up efforts to reopen the Strait of Hormuz.

Any fresh developments around the Strait of Hormuz can directly affect crude oil prices, which, in turn, influence sentiment in oil-importing economies such as India. Crude oil movement will be closely tracked alongside the policy announcement through the week.

Final Outlook

Three drivers will shape market direction this week: the RBI MPC policy statement on August 5, first-quarter results from large index constituents, and whether FII buying continues after July’s turnaround. The recent rebound has given traders a firmer starting point, but policy commentary, crude oil movement, and geopolitical headlines out of West Asia could decide whether the momentum holds into the following week.