Indian equity markets rebounded sharply on August 13, 2025, with the BSE Sensex rising 304 points and the NSE Nifty closing above the 24,600 mark, driven by positive global cues and easing domestic inflation. The rally was broad-based, led by gains in auto, metal, and pharma stocks, as investors responded to steady U.S. inflation data and expectations of a rate cut by the Federal Reserve.
Market Snapshot
| Index | Closing Level | Change | % Change |
|---|---|---|---|
| Sensex | 80,539.91 | +304.32 pts | +0.38% |
| Nifty 50 | 24,619.35 | +131.95 pts | +0.54% |
| Nifty Midcap | — | +0.63% | |
| Nifty Smallcap | — | +0.66% |
During the session, the Sensex touched an intraday high of 80,683.74, while the Nifty peaked at 24,664.55.
Key Drivers of the Rally
1. U.S. Inflation Data
- The U.S. Consumer Price Index (CPI) held steady at 2.7% in July, slightly below expectations.
- This reinforced hopes of a Federal Reserve rate cut in September, boosting global investor sentiment.
2. India’s Retail Inflation
- India’s CPI fell to an eight-year low of 1.55% in July, well below the RBI’s comfort zone.
- Lower food prices and easing supply pressures contributed to the decline.
- Analysts expect this to support discretionary spending and improve corporate margins.
3. Global Market Momentum
- Asian indices like Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng closed higher.
- European markets traded in the green, and U.S. indices hit record highs on August 12.
Sectoral Performance
| Sector | Trend |
|---|---|
| Auto | +1.18% |
| Metal | +1.26% |
| Pharma | +1.73% |
| Realty | +0.26% |
| PSU Banks | Mixed |
| Oil & Gas | Slight decline |
All major sectoral indices ended in the green, with auto, metal, and pharma leading the gains.
Top Gainers and Losers
Gainers (Sensex & Nifty)
- Bharat Electronics: +2.30%
- Eternal (Zomato): +2.19%
- Mahindra & Mahindra: +1.65%
- Kotak Mahindra Bank: +1.56%
- Tata Motors: +1.44%
- Apollo Hospitals: +8.20%
- Hindalco: +5.09%
- Dr. Reddy’s Labs: +2.71%
Losers
- Adani Ports: -0.72%
- ITC: -0.52%
- Titan: -0.43%
- IndusInd Bank: -1.26%
- Tech Mahindra: -0.35%
Expert Commentary
Vinod Nair, Head of Research at Geojit Investments, noted:
“Indian equities experienced broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending. Globally, sentiment improved on the extension of China’s tariff deadline and easing oil prices.”
Vaibhav Vidwani, Research Analyst at Bonanza Group, added:
“The market’s ability to recover decisively from recent lows demonstrates underlying resilience supported by strong domestic institutional flows and improving macroeconomic indicators.”
Outlook: Will the Rally Sustain?
Technical analysts suggest that the Nifty’s next resistance is at 24,700, and a decisive move above this level could trigger a rally toward 25,200. Support is seen at 24,337. While global risks remain—especially around trade tensions and geopolitical developments—India’s growth-inflation dynamics continue to favor a stable outlook for FY26.
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