Indian equity markets opened the week with a strong rally, breaking a six-week losing streak and erasing most of Friday’s losses. On Monday, August 11, benchmark indices surged as investors responded positively to corporate earnings, global cues, and bargain buying across sectors. The Nifty 50 closed above the 24,550 mark, while the Sensex gained nearly 750 points, signaling renewed bullish sentiment.
Closing Figures
- Nifty 50: Closed at 24,585.05, up 221.75 points or 0.91 percent
- BSE Sensex: Closed at 80,604.08, up 746.29 points or 0.93 percent
- BSE Midcap Index: Gained 0.8 percent
- BSE Smallcap Index: Rose 0.35 percent
This rebound was broad-based, with gains recorded across nearly all sectors except consumer durables.
Sectoral Performance
Out of the major sectoral indices, fifteen out of sixteen ended in the green. The strongest performers included:
- Pharma
- Metals
- Automobiles
- Oil & Gas
- Public Sector Banks
- Realty
These sectors posted gains ranging from 0.5 percent to 2 percent, reflecting widespread investor confidence.
Top Gainers and Losers
Major Gainers on Nifty:
- Adani Enterprises
- Tata Motors
- Grasim Industries
- Apollo Hospitals
- Eternal
Notable Losers:
- Hero MotoCorp
- Bharat Electronics
- Bharti Airtel
- Voltas (down 5 percent due to weak earnings)
- PG Electroplast (down 14 percent on earnings miss)
Stock-Specific Highlights
- Grasim Industries: Rose 2 percent following strong quarterly results
- Home First Finance: Gained 6 percent after a large block deal
- DOMS Industries: Surged 12 percent on robust profit and revenue growth
- Ceigall India: Fell 4 percent due to weak earnings
- Sun TV: Rose after withdrawal of promoter-related legal notices
- Manappuram Finance: Declined 1 percent on disappointing results
Market Sentiment and Expert Views
The rally was largely attributed to bargain buying after a prolonged bearish phase and optimism surrounding upcoming geopolitical developments. Investors are closely watching the scheduled meeting between U.S. President Donald Trump and Russian President Vladimir Putin on August 15 in Alaska. The meeting is expected to address trade tensions and the Ukraine conflict, which could have significant implications for global markets.
Aamar Deo Singh, Senior Vice President at Angel One, commented:
“We are definitely seeing some bargain buying today after losses seen in the last few weeks. There is some positivity on the back of scheduled U.S.-Russia talks. But it needs to be seen what comes out of those talks.”
Broader Market Trends
Nearly 120 stocks on the Bombay Stock Exchange touched their 52-week highs, including:
- Sai Life Sciences
- Paytm
- Indian Bank
- Fortis Healthcare
- Nuvoco Vistas
- Delhivery
- eClerx Services
This surge in midcap and smallcap stocks further underscores the breadth of the rally.
Global Context and Outlook
The rebound comes amid heightened global uncertainty. Last week, U.S. tariffs on Indian goods were increased by 25 percent, adding to existing trade pressures. However, the upcoming diplomatic engagement between the U.S. and Russia has sparked hopes of a more stable geopolitical environment, which could benefit emerging markets like India.
Investors are also factoring in the impact of strong domestic earnings and the resilience of key sectors such as banking, infrastructure, and manufacturing.
Conclusion
Monday’s rally marks a significant shift in market sentiment, with bulls reclaiming control after weeks of volatility. While global risks remain, the combination of strong earnings, sectoral momentum, and diplomatic optimism may continue to support Indian equities in the short term. Investors are advised to stay cautious but optimistic, keeping an eye on both domestic fundamentals and international developments.
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