Stock Market Update: Sensex Stands at 80,604, Nifty 50 witnesses a 0.91% rise today
The Indian stock market experienced a much-needed recovery on August 12, 2025, following a six-week decline. The Nifty 50 index rose by nearly 0.91 percent to close at 24,585.05, and the Sensex gained 746.29 points to settle at 80,604.08.
The day's rally was driven by a combination of factors, including strong earnings from large companies, positive global cues, and active participation from both retail and institutional investors.
Easing US tariff jitters played a significant role in improving market sentiment. The extension of the US-China trade truce and some softening of tariff concerns helped alleviate earlier disruptions caused by President Trump's tariffs on India and ongoing trade tensions.
Domestic institutional investors (DIIs) continued to be net buyers, purchasing significant shares (around Rs 5,972 crore on August 11), offsetting the heavy selling by Foreign Institutional Investors (FIIs) and preventing a larger market crash. Despite continued FII selling, the robust DII buying and optimism regarding trade negotiations helped stabilize and lift the market.
Some companies, like Tata Motors and State Bank of India, reported strong quarterly profits, boosting investor confidence as the market rebounded from prolonged losses. The banking sector, in particular, saw a boost due to SBI's impressive profit report.
Sector rotation also played a role, with IT, banking, and auto stocks leading gains, while some consumer goods and metals stocks lagged due to weak earnings. Large-cap stocks began to rise as hopes grew for better-than-expected inflation numbers.
Retail investors continued to play a major role in supporting the market, with record inflows into equity mutual funds in July. Tilaknagar Industries more than doubled its profit, resulting in an 8 percent surge in its stock.
However, investors remain cautious due to upcoming inflation data from India and the United States. Market analysts identify the Nifty's strong support near 24,000 and key resistance zone between 24,600 and 24,800. The near-term outlook remains cautiously optimistic, with the real test for the market being a break past the resistance zone and sustaining the gains in the face of upcoming economic data.
Foreign institutional investors maintain buying interest, contributing to the market's stability. Despite these positive signs, the market still faces important challenges, and investor confidence can return quickly when strong earnings and supportive global conditions align. Traders and investors will need to stay alert to sudden changes in sentiment, especially with so many factors in play.
The recovery of the Indian stock market on August 12, 2025, brought about a favorable scenario for investors, offering possibilities for both retail and institutional investors to invest in the stock-market. The growth in the Nifty 50 index and Sensex was influenced by various factors, including strong earnings from large companies, active participation from both retail and institutional investors, and the easing of US tariff jitters. While foreign institutional investors continue to show buying interest, domestic institutional investors have been significant net buyers, preventing a larger market crash.
