Stock Markets Rally on Inflation Relief
If you woke up thinking the Indian stock market would take a breather, the numbers said otherwise. On August 13, 2025, both the Sensex and Nifty cracked new highs, with benchmark indices putting in a strong show. The Sensex climbed 304 points to close at 80,539.91, while the Nifty shot up nearly 132 points, settling above 24,600—a level that traders often keep a watch on. The celebration wasn’t just at the top; midcaps and smallcaps also joined the party, signaling confidence among all kinds of investors.
The big reason? India’s retail inflation, as measured by the Consumer Price Index, plummeted to 1.55% in July, down from 2.1% in June. That’s not just good—it marks the lowest inflation since June 2017, and it hasn’t dropped like this in nine straight months. It’s rare to see this kind of cooling, and it instantly cheered up investors across the board. With inflation this low, the hope is that people will spend more, and businesses might feel bold enough to invest or hire.
Sectors in Focus and Stock Movers
This wasn’t just a fluke fueled by a handful of big names. Market breadth was healthy, with 2,099 stocks moving up compared to 1,806 slipping down, and a handful holding steady. All major sector indices ended in the green, but healthcare stole the show. The Nifty Healthcare index leaped by 2.13%, and pharma wasn’t far behind at 1.73%. Metal stocks climbed 1.26%, while the auto sector kept up with a 1.12% boost. Even the typically slower IT sector grabbed a tiny 0.05% gain. The takeaway? Investors weren’t picky—everyone got a lift.
Some individual companies made serious headlines. Apollo Hospitals shot up a stunning 8.2%, leaving most other blue-chips in the dust. Hindalco Industries, Hero MotoCorp, Dr. Reddy's Labs, and Cipla also caught big bids. Not every story was rosy; IndusInd Bank tumbled by 1.26%, making it one of the top losers of the day. Others like UltraTech Cement, Adani Ports, Titan, and ITC also ended lower, showing that not everybody rode the wave.
- The Indian rupee also had a good day, strengthening to 87.49 per dollar compared to the day before. This usually signals faith in the local economy, at least for now.
- Foreign Institutional Investors (FIIs) kept up their selling streak, offloading ₹3,400 crore worth of shares. But Domestic Institutional Investors (DIIs) more than filled the gap, buying about ₹3,500 crore and keeping the overall market mood upbeat.
Analysts say the market is feeding off positive vibes from stable inflation and growth outlooks. Some even think the central bank, the Reserve Bank of India, might lower its guard on rates if inflation keeps falling. Meanwhile, investors have one eye on global twists like trade changes and ongoing geopolitical noise, but India’s core economy is holding up strong. For now, local optimism seems to have the upper hand.
