Sensex surges 746 pts, Nifty nears 24,600 on strong earnings from SBI & Tata Motors
The Indian stock market shows strong signs of recovery today, August 12, 2025, after six weeks of consistent decline. This is the longest losing run in five years, but today the mood shifts towards optimism. The Nifty 50 index rises by nearly 0.91 percent to close at 24,585.05, while the Sensex gains 746.29 points to settle at 80,604.08.
The upward move is mainly supported by strong quarterly results from some of India’s biggest companies. State Bank of India posts better-than-expected profits, and Tata Motors also announces positive numbers. These results help restore confidence in the market.
Although the gains are encouraging, experts still caution traders to remain alert. The Nifty faces resistance near the 24,600 to 24,800 level, and without a clear breakout above this zone, the market may move sideways.
Opening Moves and Investor Mood
The day begins with cautious trading. The Gift Nifty, which gives early signals about market trends, shows a slightly weak opening near 24,595. Investors remain watchful as key inflation data from both India and the United States is due soon.
As the session progresses, the market’s tone improves. Large-cap stocks begin to rise as hopes grow for better-than-expected inflation numbers. If India’s retail inflation stays low and US inflation comes in under control, global interest rates could remain stable, which is generally positive for equities.
Sectors Leading the Recovery
Banking, automobile, and information technology stocks lead the way in today’s rebound. The IT sector performs particularly well after a period of underperformance, with renewed buying from investors.
In the banking sector, the State Bank of India’s strong quarterly profit report boosts investor confidence. In the automobile segment, Tata Motors gains on positive earnings and a strong demand outlook.
Corporate Results Driving Market Action
Several major companies release their quarterly results today, and the impact on their stock prices is immediate. SBI and Tata Motors’ positive performance drives their shares higher.
However, not all results are good. Hindalco falls after its subsidiary Novelis reports a 36 percent drop in quarterly profit. Bata India’s profit declines sharply by nearly 70 percent due to weak consumer demand, and its shares react negatively. Astral’s profit falls by 33 percent year-on-year, leading to a 6 percent drop in its stock price.
On the other hand, Ashoka Buildcon’s profit jumps by 45 percent, pushing its shares up by almost 3 percent. Tilaknagar Industries more than doubles its profit, resulting in an 8 percent surge in its stock. Medi Assist sees a strong gain of 5 percent after a large block deal worth Rs. 578 crore.
Role of Retail and Institutional Investors
Retail investors continue to play a major role in supporting the market. July sees record inflows into equity mutual funds, with small investors actively participating despite global uncertainties. Domestic institutional investors also remain strong buyers.
Foreign institutional investors maintain buying interest, adding more stability to the market. This combined support from both domestic and foreign investors helps the market recover from recent lows.
Global Factors Supporting Sentiment
International developments also contribute to today’s positive market sentiment. A 90-day tariff truce between the United States and China eases fears of a prolonged trade war. This leads to a rise in Asian markets, and India benefits from the improved mood.
At the same time, investors keep a close watch on upcoming US inflation data. If the numbers indicate cooling prices, the US Federal Reserve may avoid raising interest rates further, which would be a relief for global markets.
Technical Levels in Focus
Market analysts highlight that the Nifty’s strong support remains near 24,000. If the index stays above this level, the chances of further gains improve. However, the key resistance zone lies between 24,600 and 24,800. A breakout above 24,640 could trigger short-covering, pushing the index towards 24,800.
Traders are advised to stay cautious until a decisive move takes place. Short-term fluctuations are still likely, especially with major data releases expected in the coming days.
Inflation Data and Economic Signals
The upcoming retail inflation data for July is expected to show a historic low of around 1.76 percent. If confirmed, this would strengthen the case for continued economic growth without aggressive interest rate hikes.
The US. inflation report is equally important. Since global markets are interconnected, any surprise in the US data could influence not only Wall Street but also Indian equities.
Summary of Key Market Drivers Today
The day’s rally is driven by strong earnings from large companies, positive global cues, and active participation from both retail and institutional investors. Sector rotation plays a role, with IT, banking, and auto stocks leading gains, while some consumer goods and metals stocks lag due to weak earnings.
The near-term outlook remains cautiously optimistic. As long as Nifty holds above the 24,000 support, the chances of further upside remain alive. The real test for the market will be breaking past the resistance zone and sustaining the gains in the face of upcoming economic data.
Final Thoughts
Today’s market action shows that investor confidence can return quickly when strong earnings and supportive global conditions align. The rebound from a long losing streak is a positive sign, but the market still faces important challenges.
Key economic data from India and the United States will guide the next phase of movement. If inflation remains low and global growth stays on track, the Indian stock market could continue its upward journey. However, traders and investors will need to stay alert to sudden changes in sentiment, especially with so many factors in play.