Mumbai Stock Market Soars: Sensex Gains 304 Points Amid Positive Global Trends

The Mumbai stock market experienced a notable rebound on Wednesday, with the Sensex climbing 304 points, driven by strong buying in the metal, auto, and pharma sectors. This surge was largely influenced by stable US inflation data, which boosted global market sentiment. Analysts highlighted the positive impact of retail inflation dropping to an eight-year low, enhancing expectations for increased discretionary spending. While several companies saw gains, others lagged behind. The overall market sentiment remains optimistic as investors look forward to upcoming economic developments.

By Narendra Chaudhary Aug 13, 2025, 18:20 IST

Market Overview

Mumbai: On Wednesday, the stock market experienced a significant rebound, with the benchmark Sensex rising by 304 points, driven by increased buying in sectors such as metal, automotive, and pharmaceuticals. This surge was fueled by stable inflation data from the US, which sparked a rally in global markets.

The BSE Sensex, comprising 30 shares, increased by 304.32 points or 0.38 percent, closing at 80,539.91. At its peak during the day, it reached 80,683.74, marking a rise of 448.15 points or 0.55 percent.

Meanwhile, the NSE Nifty index also saw gains, climbing 131.95 points or 0.54 percent to finish at 24,619.35.

Market analysts noted that the decline in retail inflation to an eight-year low of 1.55 percent in July contributed to the positive momentum in domestic equities.

"The Indian stock market is witnessing widespread optimism as the Consumer Price Index (CPI) has hit an eight-year low, raising expectations for a rebound in discretionary spending, particularly in the automotive and metal sectors. Globally, sentiment has improved due to the extension of China's tariff deadline and falling oil prices," stated Vinod Nair, Head of Research at Geojit Investments Limited.

Among the companies listed on the Sensex, notable gainers included Bharat Electronics, Eternal, Mahindra & Mahindra, Kotak Mahindra Bank, Tata Motors, and Power Grid.

Conversely, Adani Ports, ITC, UltraTech Cement, and Titan were among the stocks that lagged behind.

The retail inflation rate, which dropped to 1.55 percent in July, fell below the Reserve Bank's comfort zone for the first time since January 2019, primarily due to lower food prices, as reported by government data released on Tuesday.

In the Asian markets, indices such as South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all closed significantly higher. European markets were also trading positively.

On Tuesday, US markets recorded substantial gains.

The global oil benchmark, Brent crude, saw a slight decline of 0.36 percent, settling at USD 65.88 per barrel.

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,398.80 crore on Tuesday. The Sensex had previously dropped by 368.49 points or 0.46 percent, closing at 80,235.59, while the Nifty fell by 97.65 points or 0.40 percent to 24,487.40.