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Informist, Monday, Aug. 11, 2025

By Simran Rede

MUMBAI – The headline equity indices closed higher Monday as investors covered their short positions in the market. After a slow start, the indices gained sharply and almost recovered from Friday's fall. After the Nifty 50 posted its longest weekly losing streak Friday, short-covering was seen pushing the market higher, analysts said. It is also because they believe the market is oversold and foreign investors have created extreme short positions in index derivatives.

The Nifty 50 closed at 24585.05 points, up 221.75 points or 0.9%, and the BSE Sensex closed at 80604.08 points, up 746.29 points or 0.9%. Despite touching its near-term resistance level of 24600 points, the Nifty 50 could not get past that level and closed slightly off the day's high. The 50-stock index has not yet been able to reverse the fall it has had so far in August. On the other hand, volatility in the market continues to be high. India VIX, Dalal Street's fear indicator, closed at 12.2175, up 1.5%.

The fear in the market has increased because of the recent imposition of tariffs by the US on Indian imports and the weak corporate earnings for the June quarter. All the broader market indices also ended higher Monday with the mid-cap indices outperforming the small-cap indices. The Nifty Midcap 50 closed 0.9% higher while the Nifty Smallcap 100 gained the least and was up only 0.4%.

Only three of the 50 constituents of the Nifty 50 ended in negative territory--Hero MotoCorp, Bharat Electronics, and Bharti Airtel. Of the 30 stocks in the Sensex, only Bharti Airtel closed lower.

Barring the Nifty Consumer Durables, all the sectoral indices closed in the green. The Nifty PSU Bank gained the most and ended 2.2% higher. Nifty India Defence was among the top performers, closing 1.2% higher. Most defence stocks rose after media reports said the Defence Acquisition Council had approved a contract worth INR 300.00 billion for the procurement of 87 domestically manufactured medium-altitude long-endurance drones. Adani Defence & Aerospace, a company under Adani Enterprises, and Tata Advanced Systems are likely to share this drone order, The Economic Times reported. Adani Enterprises ended the session as the top gainer in the Nifty 50, up 4.8%.

Nifty Consumer Durables was dragged down by stocks such as PG Electroplast and Voltas, which closed down over 14% and nearly 5% respectively. Voltas was the worst hit in the Nifty 200 after the company reported weak earnings for the June quarter as the mild summer and early onset of the southwest monsoon hit the company's sales due to a sharp fall in demand for air conditioners. Some brokerages have cut their estimates for earnings per share and revenue growth of segments.

PG Electroplast plunged after the company reported an on-year decline in its June quarter sales and slashed its net profit guidance by 23% on year to INR 3.1 billion for the financial year 2025-26 (Apr-Mar). Some brokerages trimmed their earnings per share estimates and target prices on the stock.   

Tata Motors closed over 3% higher to be among the top gainers in the Nifty 50 after the company exceeded the Street's estimate for the June quarter bottom line and top line. ICICI Direct Research sees the stock trading at an attractive valuation. 

State Bank of India rose over 2% after some domestic brokerages retained their "buy" rating on the stock and their bullish view on its growth trajectory and margin resilience. This follows the bank's better-than-expected earnings for the June quarter. Grasim Industries closed 2.5% higher after the conglomerate's net loss for the June quarter was narrower than expected. Brokerages have a positive outlook on the company's segmental businesses.

HBL Engineering soared 14% after rising 13% intraday to a near-eight-month high. The rise in the stock came after the company's top line and bottom line for the June quarter jumped, respectively, 79% and 16% on year. DOMS Industries gained more than 9% after brokerages maintained their optimistic view on the company's revenue growth guidance. ICICI Securities said the 18-20% on-year revenue growth guidance is "comfortably achievable". 

* Of the Nifty 50 stocks, 47 rose and 3 fell 

* Of the Sensex stocks, 29 rose and 1 fell

* On the NSE, 1,606 stocks rose, 1,414 fell, and 76 were unchanged

* On the BSE, 2,238 stocks rose, 1,926 fell, and 173 were unchanged

* Nifty PSU Bank: up 2.2%; Nifty Realty: up 1.9%; Nifty Consumer Durables: down 0.7%

BSE                                                NSE

Sensex: 80604.08, up 746.29 points or 0.9%         Nifty 50: 24585.05, up 221.75 points or 0.9%

End

Edited by Rajeev Pai

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