Strong Market Recovery: Sensex advanced over 350 points to reach 80,900.23, while Nifty gained 109 points (0.44%) to trade at 24,674.35, showcasing resilience in Indian equities.
Sectoral Leadership: Metal and auto stocks emerged as clear winners, with Tata Steel leading Nifty 50 gainers with a rise of 4.30%.
Mixed Earnings Impact: Stock-specific volatility continues, with UPL shares surging 6% on reduced losses while Federal Bank stock declined 5% amid MFI stress concerns.
Stock market today, at press time on August 4, 2025, is showing strength. Benchmark indices have seen a strong recovery from early session lows. BSE Sensex climbed over 350 points from its intraday low to settle at 80,900.23. At the same time, Nifty 50 reclaimed the crucial 24,650 level, trading 109 points higher at 24,674.35.
This rebound comes just days before the RBI's critical monetary policy decision on August 6, a key event investors are closely watching amid shifting macroeconomic dynamics. Global growth concerns resurfaced after disappointing US employment data, which triggered a sharp sell-off across equities and other risk assets on August 1, 2025. Meanwhile, gold prices surged above $3,400 on safe-haven demand and expectations of a US rate cut.
The session was characterized by strong sectoral rotation, with metal and automotive stocks taking center stage. Banking stocks, on the other hand, showed mixed performance, with the Nifty Bank index gaining 49.40 points (0.09%) to reach 55,667.00. However, individual bank performances varied significantly based on quarterly results and asset quality concerns.
The IT sector maintained modest gains, with the Nifty IT advancing 100.80 points (0.29%) to 34,750.40, benefiting from a stable global demand outlook. Meanwhile, the broader market participated in the rally, with the BSE SmallCap index rising 231.26 points (0.44%) to 52,806.59.
According to Moneycontrol list of top gainers on Nifty 50, Tata Steel shares emerged as the top performer. It witnessed a 4.30% gain to ₹159.59, driven by increasing steel demand and infrastructure spending expectations. Hero MotoCorp followed closely with a 3.37% surge to ₹4,456.70.
Bharat Electronics gained 2.86% to ₹388.00, while JSW Steel advanced 2.69% to ₹1,055.40. Eicher Motors rounded out the top five gainers with a 2.31% rise to ₹5,655.50.
According to reports, MCX India dominated trading volumes with a value of ₹885.19 crore, gaining 5.70% to ₹8,028.50. Delhivery surged 5.98% with a trading value of ₹793.44 crore, while PNB Housing Finance declined 2.47% despite high activity worth ₹652.82 crore.
Despite the overall positive sentiment, certain stocks faced selling pressure. Moneycontrol data on top losers on Nifty 50 shows that Power Grid Corporation stock led the decliners. It fell 0.77% to ₹289.00. ONGC dropped 0.76% to ₹234.98, while Tata Consumer Products declined 0.54% to ₹1,064.60. HDFC Bank witnessed mild profit booking with a 0.48% decline to ₹2,002.50, and SBI edged lower by 0.37% to ₹791.10.
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The ongoing earnings season continued to drive individual stock movements with mixed results across sectors.
UPL shares rallied 6% to ₹707.85 after the company significantly reduced its quarterly losses to ₹88 crore from ₹384 crore in the corresponding period last year, driven by higher revenues. Epigral also delivered impressive results with consolidated net profit of ₹160.69 crore, much higher than ₹85.87 crore year-on-year, though total income declined slightly.
Sarda Energy & Minerals emerged as a standout performer, jumping 19% to ₹523.70 after posting a consolidated net profit of ₹434.36 crore for Q1. It more than doubled from ₹198.76 crore in the previous year. The company also announced plans to raise ₹1,000 crore through debt instruments.
Federal Bank shares plunged 5% amid concerns over MFI stress, with credit costs increasing to 65 basis points and net interest margin at 2.94%. ABB India stock fell 6% to ₹5,049.50 after reporting a 20% decline in net profit to ₹352 crore, primarily due to forex volatility and higher expenses.
Amid a pause in Russian oil flows, Indian Oil Corporation (IOC) has procured 7 million barrels of crude from the US, Canada, and West Asia via a recent tender for September delivery. This diversification reflects strategic efforts to secure stable energy supplies.
Meanwhile, gold prices soared past $3,400, driven by escalating global tariff tensions and a soft US job report. It has fueled speculation of a potential rate cut by the Federal Reserve.
Several significant corporate announcements shaped market sentiment:
L&T Renewables secured a major order for a 116 MWac solar PV plant integrated with a 241 MWh battery energy storage system in Bihar, highlighting the growing renewable energy opportunity.
JSW Steel board approved a ₹4,300 crore expansion of its CRGO manufacturing unit in Vijayanagar, demonstrating confidence in long-term steel demand.
Tata Investment Corporation scheduled its board meeting to consider a stock split, marking the first such corporate action for the Tata Group.
The primary market remained active with JSW Cement setting its IPO price band at ₹139-147. It is scheduled to open on August 7-11 with a minimum bid lot of 102 shares.
HDB Financial shares traded near the issue price of ₹740, opening at ₹748.35 before settling flat at ₹741, indicating cautious investor sentiment toward new listings.
Stock market today demonstrated the effectiveness of domestic institutional support during volatile periods. The leadership of metal and auto stocks suggests investor confidence in India's economic growth story and infrastructure development initiatives. RBI policy decision is due on August 6, 2025. Thus, market participants are preparing for possible adjustments to the central bank's tone, especially as domestic inflation stabilizes and global growth outlook dims.
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1. What drove the stock market recovery on August 4, 2025?
The market recovery was primarily driven by strong buying in metal and auto stocks, positive cues from Asian markets, and domestic institutional support. Tata Steel and Hero MotoCorp led the rally with gains of over 3-4%.
2. Which sectors performed the best today?
Metal and auto sectors were the top performers, with Tata Steel gaining 4.30% and Hero MotoCorp rising 3.37%. The IT sector also contributed positively with a 0.29% gain.
3. How did corporate earnings impact individual stocks?
Earnings results created mixed reactions. UPL surged 6% on reduced losses, Sarda Energy jumped 19% on strong profit growth, while Federal Bank fell 5% due to MFI stress concerns and ABB India declined 6% on lower profits.
4. What are the key events to watch this week?
The RBI monetary policy decision on Wednesday, August 6, is the most crucial event. Additionally, ongoing corporate earnings and JSW Cement IPO opening on August 7 will be key market drivers.
5. Did broader markets participate in the rally?
Yes, broader markets showed positive participation with the BSE SmallCap index gaining 0.44%. However, the rally was more pronounced in large-cap stocks, particularly in metal and auto sectors.
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