Sensex & Nifty Snap 6-Week Losing Streak with a Strong Rebound

The Indian stock market snapped a six-week losing streak on Monday, August 11, 2025, with a decisive rally that brought significant relief to investors. The bulls took firm control after a prolonged period of caution, driving benchmark indices to strong gains.

Ending the day on a high note, the BSE Sensex surged 746.29 points (0.93%) to close at 80,604.08. Similarly, the NSE Nifty 50 climbed 221.75 points (0.91%), settling comfortably above the crucial 24,500 level at 24,585.05.

This robust performance, which broke the longest weekly losing streak in five years, was supported by broad-based buying interest. Let’s explore the key factors that fueled this market comeback.

The Comeback Catalysts: Why the Bulls Returned

After weeks of pressure from concerns over potential US tariffs and a mixed corporate earnings season, several positive triggers helped revive market sentiment.

A significant driver was the renewed confidence from foreign investors. Foreign Institutional Investors (FIIs), who had been net sellers, turned into net buyers on Friday, August 8, purchasing equities worth ₹1,932.81 crore. This inflow, coupled with positive cues from Asian and US markets, set a positive tone for the week.

The rally saw widespread participation, with certain sectors leading the charge. The Nifty PSU Bank index was the day’s top performer, surging by 2.20%. It was followed by strong gains in the Nifty Realty (up 1.86%) and Nifty Auto (up 1.06%) indices, indicating renewed faith in domestic growth-oriented sectors.

Key Market Movers

While the broader market trended upwards, several individual stocks were in the spotlight for their significant movements:

• Top Gainers: The rally was led by stocks such as Adani Enterprises, Tata Motors, and Trent, which were among the top gainers on the Nifty 50. Tata Motors, in particular, rallied over 3% despite reporting an approximate 30% year-on-year fall in its Q1 net profit, suggesting investors are optimistic about its future recovery prospects.

• Stocks in Focus:

  • Home First Finance: The housing finance company made headlines with a massive block deal worth ₹1,307 crore. Reports indicate that Orange Clove Investments BV, an entity affiliated with Warburg Pincus, sold its entire 10.6% stake in the company.
  • Voltas: The air-conditioner manufacturer faced a challenging day, with its stock falling sharply after the company reported a 58% drop in its Q1 net profit. The company attributed the weak performance to unseasonal weather and muted summer demand.
  • Ex-Dividend Stocks: Several companies, including Jio Financial Services, Castrol India, and Akzo Nobel India, traded ex-dividend, resulting in standard price adjustments.

Investor’s Roadmap: What’s Next?

While Monday’s rally is a welcome development, investors should remain observant of key market signals. Here are a few factors to monitor:

• Nifty’s Technical Levels: Market analysts note that the Nifty 50 has bounced from a crucial support zone around 24,200. The immediate resistance level to watch is near the 24,590 mark. A sustained move above this could signal further upward momentum.
• Global Cues: The ongoing uncertainty related to international trade policies and potential tariffs remains a key variable that could influence market sentiment in the near term.
• Q1 Earnings Season: With the first-quarter earnings season still underway, the financial results of major companies in the coming days will be critical in shaping the market’s trajectory.

Monday’s session was a powerful reminder of the market’s inherent resilience. The strong comeback indicates that underlying confidence in the Indian economy remains, with investors using corrections as buying opportunities. However, navigating the path ahead will require a continued focus on fundamentals and global developments.

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This article is for informational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.