Key Points

Indian stock markets surged as retail inflation dropped to an eight-year low, boosting investor confidence. Auto, metal, and pharma stocks were among the top performers, driving the Sensex up by 304 points. Analysts noted broad-based optimism but cautioned about lingering trade uncertainties with the US. The market remains watchful of upcoming global political developments, including the Trump-Putin meeting.

Key Points: Sensex Rises 304 Points as India Inflation Hits 8-Year Low

  • Sensex climbs 304 points as inflation eases to 1.55%
  • Auto and metal stocks lead gains amid sectoral strength
  • Trade tensions with US linger as markets eye Trump-Putin talks
  • Nifty closes at 24,619 with a 0.54% rise
2 min read

Indian stocks rise on firm global cues, low inflation; Sensex up 304 points

Indian stocks gain on low CPI inflation and global cues, with auto, metal, and pharma sectors leading the rally.

"Indian equities experienced broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending. – Vinod Nair, Geojit Investments"

New Delhi, August 13

Indian stock benchmarks settled higher on Wednesday, backed by a continued decline in headline inflation and some buying at lower levels. Firm global cues also supported the indices.

Sensex closed at 80,539.91 points, up 304.31 points or 0.38 per cent, while Nifty closed at 24,619.35 points, up 131.95 points, up 0.54 per cent, respectively.

Companies dealing in auto, media, metal, and pharma were among the top gainers today, NSE data showed.

India's retail inflation, as measured by the Consumer Price Index (CPI), eased sharply to 1.55 per cent in July 2025, marking the lowest level since June 2017.

Indian equity markets had largely been choppy as investors remained uncertain over the trade deal with the United States, which has imposed 50 per cent tariff on Indian goods.

"The past five sessions have been a roller-coaster ride for market participants, but we are witnessing noticeable strength in select pockets across sectors," said Ajit Mishra, SVP, Research, Religare Broking Ltd.

According to Vinod Nair, Head of Research, Geojit Investments Limited, "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."

"Despite uncertainties around Trump's trade stance and global risks, India's growth-inflation dynamics remain favourable for 2025-26 with risk to marginal downgrade based on tariff updates. India looks forward to the Trump-Putin meeting dated 15th August," Nair added.

Sensex is now some 5,500 points below its all-time high of 85,978 points. In 2025 so far, Sensex rose around 2.6 per cent.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

- ANI

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Reader Comments

P
Priya S
Low inflation is great for common people but I'm worried about the 50% US tariffs. Many small exporters in my area are really struggling. The government should focus more on resolving this trade issue.
A
Arjun K
Sensex up 300 points is good but remember we're still 5500 points below ATH. Market is recovering slowly but steadily. Long term investors should stay put. #PatiencePays
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Sarah B
As an NRI investor, I'm cautiously optimistic. The inflation numbers look promising but the Trump-Putin meeting could bring volatility. Diversifying across sectors seems the wise approach now.
K
Karthik V
Pharma stocks performing well is no surprise - our domestic companies have shown remarkable resilience. This sector will be key driver of growth in coming years. Kudos to Indian pharma!
M
Meera T
The market experts sound positive but I wish they'd explain things in simpler terms for retail investors like me. All these percentages and points confuse more than clarify.
D
David E
Interesting to see how Indian markets are decoupling from global trends. While other emerging markets struggle, India's domestic consumption story seems to be holding strong. Impressive!

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