RBI MPC Meeting, Trump’s Tariff Threat And Other Market Cues To Watch Today

Domestic equity market had a soft start to the week amid Trump’s tariff threats, allegation on India for buying Russian oil and reselling it in the open market for “big profits”, and mixed corporate earnings.

In the previous session, the Sensex slumped 308.47 points, or 0.38 per cent, to end at 80,710.25. Likewise, the Nifty 50 fell 73.20 points, 0.30 per cent, to settle at 24,649.55.

Key Market Cues For Today

Today’s session will likely be impacted by Reserve Bank of India (RBI) Monetary Policy Committee’s (MPC) decision on interest rates, US President Donald Trump’s fresh tariff threat, corporate earnings, and more.

RBI MPC Meeting Interest Rate Decision Today

RBI Govorner Sanjay Malhotra will announce the MPC's decision on interest rates today at 10:00 AM. So far this year, the central bank has lowered the repo rate by a total of 100 basis points, bringing it down from 6.5 per cent in February to 5.5 per cent now.

The policy review comes as retail inflation has dropped to its lowest level in over six years, while trade talks between India and the United States continue to remain in a deadlock.

Trump’s New Tariff Threat On Semiconductors, Pharma

US President Donald Trump said in an interview with CNBC that his administration is planning to announce new tariffs on semiconductors “within the next week or so.” He said he wants chip manufacturing to return to the US, as he said, “We want them made in the United States.” 

Trump also said that tariffs on pharmaceutical imports could go “as high as 250 per cent.” 

Q1 FY26 Results Today

A total of 161 companies listed on the Bombay Stock Exchange (BSE) are scheduled to release their April-June 2025 (Q1 FY26) results today.

Market participants will also keep an eye on the earnings announced by some firms after market hours on the previous day.

US Markets

US stock market closed lower on August 5 as investors reacted to concerns over Trump’s new tariff threats. A few companies, including KFC-operator Yum Brands, mentioned trade duties in their quarterly results and outlook. This also weighed on investor sentiment.

The Dow Jones Industrial Average slipped 61.90 points, or 0.14 per cent, to 44,111.74. The S&P 500 dropped 30.75 points, or 0.49 per cent, to 6,299.19, while the Nasdaq Composite fell 137.03 points, or 0.65 per cent, to 20,916.55.

Asian Markets

Asian markets were mixed in early trade today, mirroring US markets, as investors digested Trump’s tariff threats. Japan’s Nikkei 225 was up around 0.70 per cent, while South Korea’s Kospi was down about  0.26 per cent. China’s SSE Composite was trading higher by 0.30 per cent, and the Hong Kong-based Hang Seng was up by 0.18 per cent.