Markets Snap 6-Week Losing Streak in Holiday-Shortened Week

The Indian stock market has finally halted its prolonged downturn, snapping a six-week losing streak to close a holiday-shortened week on a positive note.

After weeks of sustained selling pressure, the benchmark Nifty 50 and BSE Sensex each gained approximately 1% for the week. Trading on Thursday, August 14, 2025, was subdued as investors remained cautious ahead of the Independence Day holiday. The Nifty 50 closed at 24,631.30, up a marginal 11.95 points (0.05%), while the Sensex settled at 80,597.66, gaining 57.75 points (0.07%).

What Fueled the Turnaround?

This much-needed relief rally was driven by a confluence of positive domestic and global cues that helped restore investor confidence.

One of the biggest sentiment boosters was the sovereign rating upgrade from S&P Global. The ratings agency upgraded India’s long-term credit rating to ‘BBB’ from ‘BBB-’, maintaining a ‘stable’ outlook. This is a significant vote of confidence in the Indian economy’s resilience and growth prospects, coming after a gap of 18 years.

Adding to the positive news, July’s Wholesale Price Index (WPI) inflation data came in at -0.58%, indicating that inflationary pressures at the producer level remain subdued. This gives the Reserve Bank of India (RBI) more room to maneuver its monetary policy to support growth if needed.

Sectoral Spotlight: IT Shines, Metals Stumble

While the headline indices ended the week in the green, sectoral performance on the final trading day was mixed.

The IT sector was a clear outperformer, with the Nifty IT index gaining 0.40%. Heavyweights like Wipro and Infosys were among the top gainers on the Nifty 50, providing crucial support to the index. This strength was partly fueled by a slightly weaker rupee and positive global tech sentiment.

The Banking sector also lent support, with the Nifty Bank index closing 0.29% higher, driven by gains in HDFC Bank, ICICI Bank, and SBI.

On the flip side, the Metals sector faced significant headwinds, emerging as the top loser with a drop of 1.39%. Tata Steel was the biggest drag on the Nifty, falling as profit booking and concerns over global demand weighed on the stock. Sectors like Oil & Gas and Realty also ended the day with losses.

Interestingly, the broader market did not participate in Thursday’s stability. The Nifty Midcap 100 and Nifty Smallcap 100 indices both closed in the red, down 0.31% and 0.38% respectively, indicating profit booking in these segments.

What to Watch Next

With the markets reopening on Monday, August 18th, investors will be looking for fresh triggers. Here are a few key factors on the radar:

• Global Cues: The outcome of the high-stakes meeting between the US and Russian presidents, scheduled for August 15th to discuss the war in Ukraine, will be closely watched. Any development could influence global risk sentiment and impact Indian markets.
• Institutional Flows: On Wednesday, Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹3,644 crore. However, Domestic Institutional Investors (DIIs) provided a strong cushion with net purchases of ₹5,624 crore. The direction of these flows will be crucial in the coming days.
• Technical Levels: For the Nifty 50, technical analysts have identified key levels. Near-term support is seen around 24,485 and 24,395. On the upside, resistance is expected near 24,777 and 24,868. A decisive move beyond this range could set the tone for the next week.

For now, the market has found a reason to pause. While this weekly gain is a welcome change, investors will be watching to see if the positive momentum can be sustained.

This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before investing.