Stock Market Today (4 Aug 2026): Sensex Slips, LIC OFS, UPL Falls, DLF Weak

Indian markets traded on a cautious note on 4 August 2026, with the Sensex slipping around 200 points as Reliance led the decline and banking stocks stayed under pressure ahead of the RBI's policy announcement. The session was dominated by the government's large ₹31,500 crore LIC Offer for Sale, which drew strong institutional demand even as the insurer's stock fell sharply on the discounted pricing. Away from the index-level action, a heavy slate of first-quarter results kept individual stocks volatile, with sharp moves in real estate, pharma, FMCG and auto components names as investors sorted through a mixed batch of earnings.

Sensex Drops as Reliance Weighs on the Index

The Sensex fell close to 200 points during the session, with Reliance emerging as the biggest drag on the index. A separate update through the day flagged the index down 157 points at one stage, with Best Agrolife bucking the trend by jumping 13% on strong quarterly numbers. Banking stocks also stayed soft, with the Bank Nifty falling and HDFC Bank lagging as investors positioned ahead of the Reserve Bank of India's policy decision, a event that tends to set the tone for rate-sensitive sectors including banking, auto and real estate.

LIC's ₹31,500 Crore OFS Draws Strong Demand

The government's stake sale in LIC remained the single biggest talking point of the day. The Offer for Sale opened with shares dropping as much as 8% to 8.9% as the government targeted roughly ₹31,410 crore from the sale of a 6.5% stake. Despite the steep discount-driven fall, the non-retail segment was fully subscribed by the afternoon, with the government citing strong backing from global and domestic funds and indicating it may exercise a green shoe option given the level of oversubscription. Retail bidding was set to open the following day, and the government further reassured the market that no further LIC OFS is planned for two to three years after this round.

UPL Falls 5% Despite Bullish Brokerage Targets

UPL shares fell as much as 5% during the session, with the reason for the decline described as unclear and under review. The drop came even as DAM Capital and HSBC both maintained 'Buy' ratings with targets of ₹870 and ₹880 respectively, and management struck an upbeat tone on volume-led growth and crop protection recovery. The company also named Jai Shroff as its new Crop CEO following Mike Frank's exit. Jefferies stood out as the more cautious voice, cutting its target to ₹715 on an EBITDA and profit miss, adding a layer of uncertainty to an otherwise largely positive brokerage narrative.

DLF Slips on Weak Q1 Show

DLF shares dropped around 2% after the company posted weak first-quarter results, with pre-sales reported down sharply and cash collections falling 15% year-on-year according to Jefferies. Despite the weak print, brokerages largely stayed constructive, with Jefferies setting a target of ₹815 and Morgan Stanley at ₹730, and several analysts retaining 'Buy' ratings. The company separately said it is eyeing ₹60,000 crore in residential projects, suggesting management remains focused on the medium-term growth pipeline even as near-term sales metrics disappointed.

Godrej Properties and Nestle Also Under Pressure

Godrej Properties fell after reporting a 42% year-on-year drop in first-quarter profit, even as the company highlighted a 22% rise in bookings to ₹8,651 crore and a target of ₹40,000 crore in sales by FY28. Nestle India was another notable decliner, falling around 4.5% to 5% despite posting a strong second quarter, as the company flagged demand slowdown concerns and premium valuation worries. Dabur also came under pressure after the FSSAI flagged issues with over 100 of its advertisements and imposed a ban related to honey and vinegar product claims.

Defence, Infrastructure and Pharma See Positive Momentum

Not all the day's news was negative. Larsen & Toubro secured a large ₹15,000 crore contract from ADNOC for a Middle East offshore project, adding to its infrastructure order book. Hindustan Aeronautics reported bagging ₹33,026 crore worth of orders and highlighted export sales reaching ₹50,131 crore, while projecting 7-8 years of revenue visibility on the back of its order pipeline. In pharma, Zydus Life received US FDA approval for an injection with 180-day exclusivity, and Dr. Reddy's launched a generic version of Bridion in the US market, both developments that could support incremental revenue for the respective companies.

Sector Analysis

Real estate stayed in focus through the day with mixed results from DLF, Godrej Properties and Keystone Realtors, the latter posting a sharp 278% jump in quarterly profit. Banking and financial services stayed cautious ahead of the RBI policy decision, with HDFC Life also touching a two-year low despite analysts maintaining 'Buy' ratings. FMCG names showed divergence, with Emami's profit falling 16% even as revenue grew, while Pidilite rallied on margin improvement from price hikes and lower input costs. The auto components space saw strong activity, with Motherson and Uno Minda both posting quarterly results, and defence and infrastructure names like L&T and HAL contributing positively to sentiment in their respective segments.

Market Outlook

The session captured a market working through a dense earnings calendar alongside a landmark government stake sale in LIC. The strong institutional appetite for the LIC OFS and continued brokerage confidence in names like DLF and UPL, despite weak near-term numbers, point to underlying resilience even as the Sensex closed lower on the day. On the more cautious side, banking sector weakness ahead of the RBI policy decision, along with pressure in FMCG names like Nestle and Dabur, suggests pockets of the market remain sensitive to both regulatory and demand-related headwinds. Investors may want to track the RBI's policy announcement, the outcome of LIC's retail bidding round, and further earnings from ONGC and Bharti Airtel, all of which were awaited later in the day, for cues on near-term market direction.