Sensex, Nifty End Higher as Cooling Inflation Ignites Market Rally

The Indian stock market rebounded sharply from the previous session’s losses on Wednesday, August 13, 2025, as cooling inflation at home and positive cues from abroad bolstered bullish sentiment.

At the closing bell, the BSE Sensex stood at 80,565, up 304.32 points (0.38%), while the NSE Nifty 50 surged 131.95 points (0.54%) to settle at 24,619.35. The rally was broad-based, with healthcare, metal, and auto stocks leading the charge and reflecting renewed investor confidence.

The market’s upbeat performance was fueled by a confluence of positive factors. Globally, softer-than-expected US inflation data bolstered hopes that the Federal Reserve might consider a rate cut in September. This positive sentiment spilled over into Asian markets, with major indices in Shanghai, Hong Kong, and Tokyo also closing in the green.

Domestically, the primary catalyst was a significant drop in India’s retail inflation. Data from the Ministry of Statistics and Programme Implementation (MoSPI) showed the Consumer Price Index (CPI) fell to a multi-year low of 1.55% in July. This sharp decline from the previous month’s 2.1% was a major sentiment booster, easing pressure on the Reserve Bank of India (RBI) to maintain a hawkish monetary policy.

The market was also abuzz with corporate earnings for the first quarter of FY26, leading to significant stock-specific movements. Apollo Hospitals Enterprise was a standout performer, surging nearly 8% to become the top gainer on the Nifty 50 after reporting a robust 42% year-on-year jump in its Q1 net profit. Other notable gainers included Hindalco, Hero MotoCorp, and Dr. Reddy’s Labs.

However, the gains were not universal. Stocks such as IndusInd Bank, Adani Ports, and ITC faced selling pressure, ending the day among the top losers on the Nifty.

Key Factors to Watch

For investors, the key is to watch if this positive momentum can be sustained. Here are a few things to keep an eye on:

• Global Cues: Keep a close watch on further statements from the US Federal Reserve and other central banks. Any indication of future interest rate movements will be a key market driver.
• Inflation Trajectory: While the July inflation data was encouraging, it is important to see if this trend continues. The RBI’s commentary in the coming weeks will be crucial.
• Corporate Earnings: The Q1 earnings season is still underway. The performance of major companies, especially in the banking and IT sectors, will continue to influence market sentiment.
• Technical Levels: For the Nifty 50, the range of 24,400 to 24,700 is seen as a crucial zone. A decisive breakout on either side could set the tone for the near future.

Today’s rally brings a welcome dose of optimism to the market. While the long-term outlook will depend on a variety of economic factors, the cooling inflation and positive global backdrop have certainly given investors a reason to cheer.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.