On August 4, 2025, the Indian stock market closed higher, recovering from recent losses as bargain hunting in energy and PSU bank stocks drove gains. The Sensex and Nifty rose in a volatile session, supported by positive domestic earnings and easing US tariff concerns. Below is a precise summary of the day’s market performance, key drivers, and sectoral trends.
Market Performance
BSE Sensex: Gained 418.81 points (0.52%) to close at 81,018.72, with an intraday high of 81,185.58 and a low of 80,599.91.
NSE Nifty 50: Rose 157.40 points (0.64%) to settle at 24,722.75, trading between 24,565.35 and 24,768.35 intraday.
Market Breadth: On the BSE, ~2,200 stocks advanced, 1,800 declined, and 150 were unchanged out of ~4,150 traded stocks. About 180 stocks hit the upper circuit, and 140 hit the lower circuit.
Volatility: The India VIX fell 4% to ~15.8, signaling reduced uncertainty as investors regained confidence.
Key Drivers
Global Market Cues: Positive global sentiment, with the S&P 500 futures up 0.3% and Nikkei 225 (+0.5%), supported the rally. Easing concerns over US tariffs post-August 1 deadline and optimism around US-China trade talks boosted markets.
Earnings Season: Strong Q1 FY26 earnings from energy and PSU banks offset mixed results in IT and financials, driving selective buying.
FII and DII Activity: Foreign Institutional Investors (FIIs) were net buyers, adding ~₹1,500 crore, while Domestic Institutional Investors (DIIs) bought ~₹2,000 crore, fueling the upmove.
Rupee Movement: The Indian rupee strengthened 5 paise to 86.53 against the US dollar, supported by FII inflows and a weaker dollar (DXY at 97.00).
Domestic Macros: Robust GST collections (₹2.01 lakh crore, May 2025) and an above-normal monsoon bolstered sentiment, with focus shifting to upcoming CPI data.
Sectoral Highlights
Sectoral Trends: Nifty Energy (+1.2%), PSU Bank (+1.5%), and Pharma (+0.8%) led gains. Nifty IT (-0.5%) and Realty (-0.3%) lagged. Nifty Midcap 100 and Smallcap 100 rose 0.6% and 0.4%, respectively.
Broader Market: Large-cap energy and PSU banks drove gains, with selective buying in mid and small-caps.
Market Sentiment: The market opened higher, recovering from early losses, with GIFT Nifty futures at ~24,750 signaling a stable outlook.
Corporate Developments
Adani Green: Q1 profit up 31% YoY to ₹824 crore, boosting energy sentiment.
Waaree Energies: Q1 net profit rose 89% to ₹745 crore, supporting renewables.
SBI: Strong Q1 results lifted PSU bank sentiment.
HDB Financial Services: Post-IPO listing performance stabilized, aiding financials.
Tata Consumer: Weak Q1 results continued to weigh on FMCG.
Market Outlook
Technical Levels: Nifty support at 24,580–24,500 (100-day EMA), resistance at 24,950–25,000. Sensex support at 80,500–80,000, resistance at 81,300–82,200. A break above 24,950 could target 25,150.
Volatility Expectations: VIX at ~15.8 suggests moderate volatility, with earnings and global cues as key drivers.
Upcoming Triggers: India’s CPI data, US Federal Reserve comments, Q1 FY26 earnings, and global trade developments will guide sentiment. Monsoon progress and oil prices remain critical.
Conclusion
On August 4, 2025, the Indian stock market closed higher, with the Sensex at 81,018.72 (up 0.52%) and Nifty at 24,722.75 (up 0.64%), driven by energy and PSU banks. Strong earnings, FII/DII buying, and easing US tariff concerns fueled the rally, despite IT and realty weakness. Investors should monitor Nifty’s 24,950 resistance and focus on energy and PSU banks while staying cautious of global trade and CPI data.
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