6-Day Rally Ends: Sensex Falls 694 Points, Nifty Slips 214 This Week

Domestic equity benchmarks ended their six-day winning streak on Friday, 22 August 2025, as profit booking and global uncertainties weighed on sentiment. Strong gains earlier in the week were supported by optimism over upcoming GST reforms, robust domestic data including a sharp rise in India’s PMI, and steady core sector growth. However, mixed global cues from major economies and central banks led to a market pullback at the week’s end.

Weekly Market Performance
In the week ended 22 August 2025, the S&P BSE Sensex gained 709.19 points or 0.88 per cent to settle at 81,306.85, while the Nifty 50 advanced 238.8 points or 0.97 per cent to 24,870.10. The BSE Mid-Cap index rose 2.02 per cent to 45,890.28 and the BSE Small-Cap index added 2.34 per cent to 53,002.32, with select small-cap and mid-cap stocks delivering multibagger-type weekly returns.

Markets gained consistently from Monday to Thursday, with the Sensex and Nifty hitting new highs at 82,000.71 and 25,083.75 respectively. However, Friday saw a sharp reversal, with the Sensex falling 693.86 points or 0.85 per cent and the Nifty slipping 213.65 points or 0.85 per cent.

Economic Indicators
The HSBC Flash India Composite PMI Output Index surged to 65.2 in August from 61.1 in July, marking one of the fastest expansions in over a year. The services sector led the momentum, with its PMI climbing to 65.6, while manufacturing PMI output rose to 64.2. Broader manufacturing PMI stood at 59.8, reflecting healthy demand, employment, and inventory activity.

India’s eight core industries registered 2 per cent growth in July 2025, driven by steel, cement, fertilisers, and electricity. Revised data showed June 2025 core sector growth at 2.2 per cent, indicating steady industrial performance.

Stocks in Focus

• Vodafone Idea surged 14.95 per cent despite reporting a Q1 FY26 net loss of Rs 6,608.1 crore. Revenue grew 4.9 per cent YoY to Rs 11,022.5 crore, with ARPU improving 15 per cent to Rs 177. Reports of a possible government relief package for AGR dues also supported sentiment.
• HLE Glascoat climbed 23.24 per cent after announcing a strategic European acquisition worth EUR 2.75 million through its subsidiary.
• Dynamic Cables surged 16.72 per cent on fresh BIS approvals and capacity expansion plans, boosting turnover potential to Rs 135 crore per month.
• Insolation Energy jumped 11.26 per cent after its subsidiary commenced operations at a new 3 GW PV module plant in Jaipur.
• Oriental Rail Infrastructure gained 14.66 per cent after its subsidiary secured a Rs 60 crore railway order.
• Nazara Technologies tumbled 18.41 per cent after the passage of the Online Gaming Bill, 2025, banning real-money online gaming.
• Other notable movers included Bajaj Finserv (+2.10 per cent), NTPC Green Energy (+2.52 per cent), Hindustan Zinc (-0.35 per cent), and IndusInd Bank (-1.27 per cent).

Global Market Trends
Global cues remained mixed. Japan’s exports fell 2.6 per cent YoY in July, marking the steepest drop in four years, while inflation eased to 3.1 per cent. China kept its loan prime rates unchanged for the third consecutive month. The UK reported a higher-than-expected inflation rate of 3.8 per cent in July, while the Eurozone Composite PMI improved to 51.1.

In the US, retail sales rose 0.5 per cent in July, while consumer sentiment weakened for the first time in four months. The S&P Global US Composite PMI increased to 55.4, led by manufacturing growth. However, weekly jobless claims rose to a three-month high, with continuing claims at their highest in four years, signaling labor market softness.

Disclaimer: The article is for informational purposes only and not investment advice.