On August 4, 2025, Indian stock markets witnessed a sharp rebound led by auto, metals, and financial stocks after weeks of losses. With strong earnings reports and a weaker dollar boosting investor sentiment, key indices closed higher, signaling renewed momentum in domestic equities.
India’s equity markets staged a robust recovery on Monday, August 4, 2025, after enduring a prolonged period of declines. The rebound was supported by broad-based buying, particularly in the metal, financial, and auto sectors. Technology stocks, which were recently under pressure due to global concerns, also contributed to the gains.
The Nifty 50 rose 0.64% to close at 24,722, while the BSE Sensex gained 0.55% to settle at 81,018. This recovery follows five consecutive weeks of market weakness—the longest such streak in two years. The broader indices also mirrored this uptrend, with the Nifty Midcap 100 climbing 1.4% and the Nifty Smallcap 100 gaining 1.27%.
A sharp dip in the U.S. dollar index, falling below 99, improved the outlook for Indian equities. The softer dollar, triggered by a weak U.S. July jobs report, boosted global sentiment and lifted demand for commodities, favoring Indian metal stocks. Additionally, expectations of Federal Reserve rate cuts helped tech stocks rebound.
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The market rally coincided with renewed global trade concerns following the announcement of new U.S. import tariffs set to take effect from August 7, 2025.
Several companies posted substantial gains driven by strong quarterly results:
- Sarda Energy & Minerals emerged as the top gainer in the Nifty 500, surging 19.5%. The company posted a consolidated net profit of ₹437 crore, a 120% year-on-year and 335% quarter-on-quarter increase. Its energy division contributed ₹800 crore to revenue and ₹467 crore to EBITDA, accounting for 47% and 67% of consolidated figures, respectively.
- Aditya Birla Capital rose nearly 11% following a robust performance in the June quarter.
- Transformers & Rectifiers India Ltd. gained 8.5% after reporting a jump in net profit to ₹67 crore in Q1FY25, up from ₹21 crore.
- Delhivery Ltd., a leading logistics services provider headquartered in Gurgaon, saw a 7% gain after exceeding Q1 expectations.
- Multi Commodity Exchange (MCX) shares rose 5.1%, buoyed by strong quarterly earnings and the announcement of a stock split.
- Hero MotoCorp Ltd. saw its stock rise 5.2%, reporting 4.5 lakh unit sales in July 2025—a 21% YoY increase. Motorcycle sales rose 18% to 4 lakh units, while scooter sales surged over 64% to 49,140 units.
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Other significant gainers included Capri Global Capital, Netweb Technologies, UPL Ltd., GMDC, Data Patterns (India) Ltd., CDSL, Manappuram Finance, JSW Energy, eClerx Services, IIFL Finance, Endurance Technologies, and Brainbees Solutions (FirstCry), each rising over 5%.
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