Sensex Soars 304 Points, Nifty Breaks 24,600 as CPI Plummets to 8-Year Low
Markets roar back as inflation data shocks—traders cheer while skeptics eye the next bubble.
Sensex and Nifty ride the CPI wave. The benchmark indices surge as consumer prices hit lows not seen since the crypto dark ages (aka 2017).
Bulls charge, bears hibernate. With inflation crushed—for now—equities party like it's 2021. Just don't mention the national debt.
Another day, another 'goldilocks' print. Central bankers whisper 'soft landing,' but Wall Street's already pricing in champagne and caviar.
Pro tip: When CPI and stocks rally together, someone's getting liquidated. Probably retail.
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
