Indian markets closed higher on Wednesday, with the Sensex gaining 304 points to 80,539.91 and the Nifty adding 132 points to 24,619.35, buoyed by retail inflation falling to an eight-year low of 1.55% in July—well below the RBI’s target range. 
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Markets closed higher on Wednesday, with the BSE Sensex gaining 304.32 points or 0.38 per cent to end at 80,539.91, while the NSE Nifty 50 advanced 131.95 points or 0.54 per cent to settle at 24,619.35. The rally was primarily driven by India’s retail inflation touching an eight-year low of 1.55 per cent in July, significantly below the Reserve Bank of India’s 2-6 per cent target range.

Apollo Hospitals emerged as the biggest gainer on Nifty 50, surging 8.20 per cent to ₹7,830 after reporting a 41.8 per cent jump in Q1 consolidated net profit. Hindalco followed with a 5.09 per cent gain to ₹701, while Dr. Reddy’s Laboratories rose 2.71 per cent to ₹1,253.40. Cipla gained 2.52 per cent to ₹1,560, and Hero MotoCorp advanced 2.35 per cent to ₹4,754.50.

IndusInd Bank leads Nifty losers

On the downside, IndusInd Bank led the losers, declining 1.26 per cent to ₹773.20. Adani Ports fell 0.72 per cent to ₹1,320.90, while ITC dropped 0.52 per cent to ₹414.20. Titan slipped 0.43 per cent to ₹3,471.80, and Tech Mahindra declined 0.35 per cent to ₹1,504.

“Today, Indian equity markets delivered a robust positive performance,” said Vaibhav Vidwani, Research Analyst at Bonanza Group. “The market’s upward trajectory was primarily driven by multiple positive catalysts that converged on this trading session.”

US CPI data lifts global sentiment, Fed cut hopes rise

Global cues provided substantial support, with US markets closing at record highs following tamer-than-expected inflation data. The US headline CPI held steady at 2.7 per cent in July, slightly below the 2.8 per cent forecast, boosting expectations of Federal Reserve rate cuts.

Sectoral performance showed broad-based buying across most segments. The Nifty Pharma index surged nearly 1.73 per cent, followed by metals advancing 1.26 per cent and auto gaining 1.12 per cent. However, Nifty PSU Bank and Nifty Oil & Gas underperformed during the session.

Broad-based buying lifts midcaps, smallcaps

“Broad-based buying was witnessed across most sectors, with pharmaceutical, auto, and metal stocks leading the charge,” Vidwani added. “The positive momentum reflects a confluence of supportive domestic and global factors that have temporarily alleviated concerns over US-India trade tensions and tariff uncertainties.”

The broader market participated in the upmove, with both Nifty Midcap 100 and Nifty Smallcap 100 indices ending in the green at 56,681.50 and gaining 0.63 per cent. The advance-decline ratio favoured advancing stocks, with 2,230 stocks advancing against 1,864 declining on the BSE.

“Indian equities experienced a broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending, led by autos and metals,” said Vinod Nair, Head of Research at Geojit Investments Limited. “Midcaps outperformed, reflecting strong investor appetite.”

Rupee strengthens on geopolitical optimism

In currency markets, the rupee traded strongly at 87.51, gaining 0.23 paise. “Rupee traded strong on optimism over possible positive developments in the Russia-Ukraine conflict as US President Trump and Russian President Putin are set to meet on August 15,” said Jateen Trivedi, VP Research Analyst at LKP Securities. “The rupee is expected to trade in a range of 87.25–88.00.”

Gold gains on dovish Fed hopes

Commodity markets saw mixed performance. Gold gained ₹350 to close at ₹1,00,500 on MCX as lower US CPI data boosted sentiment for an upcoming US rate cut. “The softer inflation reading has increased expectations of a more dovish Fed stance, keeping gold supported in the near term. Range for gold is seen between ₹99,500–₹1,02,000,” Trivedi noted.

Crude slips

WTI crude oil futures slipped to $63.1 per barrel amid signs that peak summer demand in the US may be fading and projections of global oil oversupply.

Nifty resistance seen at 24,700–24,740

From a technical perspective, Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, noted: “For Nifty, the zone of 24700–24740 is expected to act as a key resistance area in the near term. A sustained move above 24740 could trigger further upside, potentially extending the ongoing pullback rally toward the 24900 level.”

Looking ahead, market participants are closely monitoring the outcome of the scheduled Trump-Putin meeting on August 15, which could provide further directional cues for both domestic and global markets.

Published on August 13, 2025