The second week of August 2025 (August 11–15) turned out to be an eventful one for the Indian stock markets. After enduring six consecutive weeks of losses, the markets finally witnessed a decisive rebound. With both global and domestic triggers aligning positively, investor sentiment improved sharply in the early part of the week.
On the global front, the spotlight was on the US inflation report, which showed consumer prices rising at a slower-than-expected pace in July. This boosted hopes that the US Federal Reserve could announce its much-anticipated rate cut in September. Such a move would not only ease global liquidity but also encourage foreign investors to return to emerging markets like India.
Back home, India’s retail inflation fell to 1.55% in July 2025, marking an eight-year low. This unexpected disinflationary trend was largely driven by easing food prices. With inflation comfortably below the RBI’s tolerance band of 2–6%, analysts began speculating about further policy flexibility and an extended accommodative stance by the central bank.
The Sensex regained the 80,000 mark, while the Nifty scaled past 24,600, driven by strong sectoral performances in banking, autos, metals, healthcare, and consumer technology. However, despite this rebound, the market was not free from caution. The ongoing US–India trade tensions, linked to tariff hikes, continued to loom in the background. In addition, geopolitical uncertainty ahead of the US–Russia summit in Alaska kept traders on their toes.
With the markets shut on Friday, August 15, for Independence Day, trading activity was restricted to just four sessions. Yet, those four sessions packed in plenty of action for both traders and long-term investors.
Let’s break down the weekday by day, sector by sector.
Day-Wise Sector Analysis
August 11, 2025 (Monday): Bulls Charge Back
Indices:
*Sensex: +746 points → 80,604.08
*Nifty 50: +221.75 points → 24,585.05
After six straight weeks of losses, Monday’s session marked a strong comeback. The market opened with a gap-up and sustained buying across sectors, ending near the day’s high.
Sectoral Highlights:
1. Banking & Financial :
a. PSU banks were the biggest winners. SBI jumped 2.4% after reporting improved loan growth.
b. The Nifty PSU Bank Index gained 2.2%.
c. Private banks like HDFC Bank and ICICI Bank also saw steady buying, supported by stable credit demand data.
2 . Automobiles:
a. Tata Motors rallied as strong sales in the EV segment boosted investor confidence.
b. M&M rose on robust tractor sales ahead of the festive season.
c.Two-wheeler majors like Bajaj Auto gained after July export numbers exceeded expectations.
3.Energy & Oil:
a. Brent crude prices cooled to ~$66 per barrel, sparking renewed interest in OMCs (Oil Marketing Companies).
b.Reliance Industries rose modestly, while ONGC and GAIL gained over 1%.
4. Realty & Infrastructure:
a. Realty stocks saw fresh buying. DLF and Godrej Properties gained ~2% on expectations of continued housing demand.
Key Drivers:
FIIs turned net buyers with inflows of ₹1,932 crore.
Positive global cues after optimism built around the upcoming US–Russia summit.
Technical factors: both Sensex and Nifty recovered key moving averages, triggering momentum buying.
*Sensex: +746 points → 80,604.08
*Nifty 50: +221.75 points → 24,585.05
After six straight weeks of losses, Monday’s session marked a strong comeback. The market opened with a gap-up and sustained buying across sectors, ending near the day’s high.
Sectoral Highlights:
1. Banking & Financial :
a. PSU banks were the biggest winners. SBI jumped 2.4% after reporting improved loan growth.
b. The Nifty PSU Bank Index gained 2.2%.
c. Private banks like HDFC Bank and ICICI Bank also saw steady buying, supported by stable credit demand data.
2 . Automobiles:
a. Tata Motors rallied as strong sales in the EV segment boosted investor confidence.
b. M&M rose on robust tractor sales ahead of the festive season.
c.Two-wheeler majors like Bajaj Auto gained after July export numbers exceeded expectations.
3.Energy & Oil:
a. Brent crude prices cooled to ~$66 per barrel, sparking renewed interest in OMCs (Oil Marketing Companies).
b.Reliance Industries rose modestly, while ONGC and GAIL gained over 1%.
4. Realty & Infrastructure:
a. Realty stocks saw fresh buying. DLF and Godrej Properties gained ~2% on expectations of continued housing demand.
Key Drivers:
FIIs turned net buyers with inflows of ₹1,932 crore.
Positive global cues after optimism built around the upcoming US–Russia summit.
Technical factors: both Sensex and Nifty recovered key moving averages, triggering momentum buying.
August 12, 2025 (Tuesday): Calm Before Inflation Data
Markets extended gains, though at a more measured pace. Traders were cautious ahead of the US CPI release, which was due later that day.
Sectoral Highlights:
1. Information Technology:
a. Infosys and TCS added around 1%.
b.HCL Tech gained after securing a new multi-year contract in Europe.
c.Weakness in the rupee (~₹83.20/USD) helped export-oriented IT stocks.
a. Infosys and TCS added around 1%.
b.HCL Tech gained after securing a new multi-year contract in Europe.
c.Weakness in the rupee (~₹83.20/USD) helped export-oriented IT stocks.
2. Healthcare & Pharma:
a.Sun Pharma and Dr. Reddy’s advanced as investors rotated into defensives ahead of macro data.
b. Cipla gained after regulatory approval for a new respiratory drug in the US.
a.Sun Pharma and Dr. Reddy’s advanced as investors rotated into defensives ahead of macro data.
b. Cipla gained after regulatory approval for a new respiratory drug in the US.
3.Metals & Mining
a.Hindalco and JSW Steel rallied on reports of higher global aluminum and steel demand.
b.NMDC advanced on expectations of higher iron ore prices in Asia.
b.NMDC advanced on expectations of higher iron ore prices in Asia.
4. Mid & Small Caps
a.Broader markets outperformed large caps. The Nifty Midcap 100 gained 0.7%, while the Smallcap index rose 0.8%.
b. Stocks like Zomato, Policybazaar, and IRCTC attracted fresh buying interest.
b. Stocks like Zomato, Policybazaar, and IRCTC attracted fresh buying interest.
Key Drivers:
Traders positioned themselves cautiously ahead of inflation data.
Domestic liquidity remained strong, with retail investors continuing SIP inflows
Traders positioned themselves cautiously ahead of inflation data.
Domestic liquidity remained strong, with retail investors continuing SIP inflows
August 13, 2025 (Wednesday): Inflation Numbers Ignite Rally
Indices:
Sensex: +304 points → 80,526.94
Nifty 50: +121.75 points → 24,602.90
Sensex: +304 points → 80,526.94
Nifty 50: +121.75 points → 24,602.90
Markets reacted positively to the twin inflation numbers.
Global context: US CPI rose just 0.2% MoM in July—below expectations—fueling hopes of a September rate cut by the Fed. Bond yields in the US fell, sparking a global risk-on rally.
Domestic context: India’s retail inflation fell to 1.55% in July, well below the RBI’s 2–6% tolerance band. This gave investors' confidence that interest rates would remain stable.
Sectoral Highlights:
1.Healthcare & Hospitals
Apollo Hospitals surged 6% on strong quarterly earnings.
Max Healthcare and Fortis also gained on improving patient volumes.
2.Metals
Hindalco gained 4.3%, riding the global commodity rally.
Tata Steel advanced nearly 2%.
3. Consumer Technology
Nykaa rose 4% after strong sales in its beauty segment.
Paytm jumped 3.6% amid optimism around UPI transaction growth.
4. Defense & PSU
Bharat Dynamics rose 3% after receiving a new defense contract from the Ministry of Defence.
BEL and HAL also moved higher on strong order books.
5. Broader Market
14 out of 16 sectoral indices on NSE closed positive.
Midcaps gained 0.8% and small caps rose 0.6%, outperforming benchmarks.
Key Drivers:
Cooling inflation in both India and the US.
Rising probability of a Fed rate cut in September.
Strong corporate earnings driving stock-specific rallies.
Apollo Hospitals surged 6% on strong quarterly earnings.
Max Healthcare and Fortis also gained on improving patient volumes.
2.Metals
Hindalco gained 4.3%, riding the global commodity rally.
Tata Steel advanced nearly 2%.
3. Consumer Technology
Nykaa rose 4% after strong sales in its beauty segment.
Paytm jumped 3.6% amid optimism around UPI transaction growth.
4. Defense & PSU
Bharat Dynamics rose 3% after receiving a new defense contract from the Ministry of Defence.
BEL and HAL also moved higher on strong order books.
5. Broader Market
14 out of 16 sectoral indices on NSE closed positive.
Midcaps gained 0.8% and small caps rose 0.6%, outperforming benchmarks.
Key Drivers:
Cooling inflation in both India and the US.
Rising probability of a Fed rate cut in September.
Strong corporate earnings driving stock-specific rallies.
August 14, 2025 (Thursday): Pre-Holiday Caution
Indices:
Nifty 50: –0.12% → 24,648.35
Sensex: +0.11% → 80,629.19
Markets traded cautiously ahead of the long Independence Day holiday. Traders preferred to book profits after three strong sessions.
Sectoral Highlights:
1.FMCG & Consumption
HUL and Nestle gained modestly on safe-haven buying.
ITC was flat but held firm near record highs.
2.IT & Exporters
Infosys and Wipro eked out small gains on dollar strength.
LTIMindtree rose on reports of a major European client expansion.
3.Banking & Financials
Private banks like HDFC Bank traded flat.
PSU banks slipped mildly as traders booked profits.
5.Mid & Small Caps
Selective buying continued in defense and tech names, though overall participation was lower.
Key Drivers:
Geopolitical caution ahead of the US–Russia summit in Alaska.
Traders avoiding aggressive positions before the holiday.
Analysts flagged a “stormy week ahead” due to tariffs, earnings, and inflation data.
Nifty 50: –0.12% → 24,648.35
Sensex: +0.11% → 80,629.19
Markets traded cautiously ahead of the long Independence Day holiday. Traders preferred to book profits after three strong sessions.
Sectoral Highlights:
1.FMCG & Consumption
HUL and Nestle gained modestly on safe-haven buying.
ITC was flat but held firm near record highs.
2.IT & Exporters
Infosys and Wipro eked out small gains on dollar strength.
LTIMindtree rose on reports of a major European client expansion.
3.Banking & Financials
Private banks like HDFC Bank traded flat.
PSU banks slipped mildly as traders booked profits.
5.Mid & Small Caps
Selective buying continued in defense and tech names, though overall participation was lower.
Key Drivers:
Geopolitical caution ahead of the US–Russia summit in Alaska.
Traders avoiding aggressive positions before the holiday.
Analysts flagged a “stormy week ahead” due to tariffs, earnings, and inflation data.
August 15, 2025 (Friday): Independence Day Holiday
The markets were closed on account of India’s 78th Independence Day. Both NSE and BSE remained shut for equity, derivatives, and securities lending & borrowing (SLB) segments.
Previous Week Blog
Broader Context & Key Themes of the Week
US–India Trade Tensions
US tariffs on Indian imports remain a key overhang. With cumulative duties nearing 50% (including Russian oil-linked tariffs), export-heavy sectors like textiles, IT services, and chemicals are under pressure.
Inflation & RBI Policy
With July CPI at 1.55%, India has room for accommodative monetary policy. Analysts expect the RBI to hold rates steady while monitoring food and fuel price trends.
FII vs. DII Flows
FIIs turned cautious net buyers early in the week but remain sensitive to global triggers.
Domestic Institutional Investors (DIIs), fueled by retail SIP flows (~₹18,000 crore monthly), continue to provide a cushion.
Corporate Earnings SeasonQ1FY26 earnings drove stock-specific moves—Apollo Hospitals, Hindalco, and Nykaa all beat expectations.
Bank earnings were steady, supporting Nifty Bank.
Global Market Performance US indices rallied mid-week after CPI data, with the Dow and S&P 500 hitting fresh highs.Asian peers (Nikkei, Hang Seng) also rose, lending positive cues to Dalal Street.
US tariffs on Indian imports remain a key overhang. With cumulative duties nearing 50% (including Russian oil-linked tariffs), export-heavy sectors like textiles, IT services, and chemicals are under pressure.
Inflation & RBI Policy
With July CPI at 1.55%, India has room for accommodative monetary policy. Analysts expect the RBI to hold rates steady while monitoring food and fuel price trends.
FII vs. DII Flows
FIIs turned cautious net buyers early in the week but remain sensitive to global triggers.
Domestic Institutional Investors (DIIs), fueled by retail SIP flows (~₹18,000 crore monthly), continue to provide a cushion.
Corporate Earnings SeasonQ1FY26 earnings drove stock-specific moves—Apollo Hospitals, Hindalco, and Nykaa all beat expectations.
Bank earnings were steady, supporting Nifty Bank.
Global Market Performance US indices rallied mid-week after CPI data, with the Dow and S&P 500 hitting fresh highs.Asian peers (Nikkei, Hang Seng) also rose, lending positive cues to Dalal Street.
Conclusion
The week of August 11–15, 2025, reinforced the resilience of Indian markets. After a protracted losing streak, benchmarks not only recovered but also consolidated near critical resistance levels. The rally was broad-based, with participation from banks, autos, metals, healthcare, and consumer tech.
The most reassuring signal came from the inflation numbers. With US inflation moderating and Indian CPI at record lows, the possibility of monetary easing has brightened. However, risks remain—particularly the US–India tariff spat, global geopolitical flashpoints, and the overextended nature of mid- and small-cap valuations.
The most reassuring signal came from the inflation numbers. With US inflation moderating and Indian CPI at record lows, the possibility of monetary easing has brightened. However, risks remain—particularly the US–India tariff spat, global geopolitical flashpoints, and the overextended nature of mid- and small-cap valuations.