Mumbai, August 23, 2025 – Indian equity markets ended Friday’s session on a strong note, mirroring upbeat global cues and improved investor sentiment. Both benchmark indices, the BSE Sensex and the NSE Nifty 50, extended their winning streak, supported by robust buying in banking, IT, and auto stocks.
The Sensex surged 410 points, closing at 77,890, while the Nifty 50 advanced 128 points to finish at 23,490. Intraday, both indices touched fresh highs, reflecting optimism among traders and long-term investors.
🔹 Market Drivers
The rally was largely driven by three key factors:
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Positive global momentum – U.S. and European markets ended higher in the previous session, following signs of cooling inflation and hopes of a soft landing for the U.S. economy. Asian markets also opened in the green, which boosted domestic sentiment.
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Easing crude oil prices – Brent crude slipped below $80 per barrel, providing relief to energy-dependent economies like India. Lower oil prices are expected to ease inflationary pressures and improve corporate margins.
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Stable monetary policy expectations – With the Reserve Bank of India (RBI) unlikely to raise interest rates in the upcoming policy review, investors gained confidence in growth-led sectors such as banking, auto, and real estate.
🔹 Sector-Wise Performance
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Banking & Financials: HDFC Bank, ICICI Bank, and Kotak Mahindra Bank witnessed strong demand, contributing significantly to the Sensex’s gains.
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IT Stocks: Infosys and TCS gained nearly 2% each, supported by steady global technology demand.
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Auto Sector: Tata Motors and Mahindra & Mahindra rallied after reports of higher vehicle sales in July-August.
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FMCG & Pharma: Hindustan Unilever and Dr. Reddy’s slipped slightly, as investors booked profits after recent rallies.
🔹 Top Gainers and Losers
Top Gainers on Nifty 50
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Infosys (+2.4%)
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Tata Motors (+2.1%)
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HDFC Bank (+1.9%)
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Reliance Industries (+1.7%)
Top Losers on Nifty 50
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Hindustan Unilever (-0.8%)
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Dr. Reddy’s (-0.6%)
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Sun Pharma (-0.5%)
🔹 Broader Market Performance
The BSE Midcap and Smallcap indices also outperformed, rising nearly 1.5% each, showing strong retail and institutional participation. Analysts note that midcap and smallcap stocks continue to attract fresh inflows due to better earnings visibility and lower valuations compared to largecaps.
Market breadth remained positive, with more than 2,100 stocks advancing against 1,200 declining on the BSE.
🔹 Expert Views
Market experts believe that the positive momentum is likely to continue in the near term, though some volatility cannot be ruled out due to global economic uncertainties.
“Domestic markets are riding high on strong earnings and favorable global cues. If Nifty sustains above 23,500, we could see further upside towards 23,700–23,800 levels. However, investors should remain cautious as profit booking may emerge at higher levels,” said Rajiv Mehta, Senior Analyst at Angel One.
He added that sectors like banking, IT, and auto will continue to drive the rally, while pharma and FMCG may remain range-bound in the short term.
🔹 Outlook for Next Week
With global central bank policies, crude oil movement, and foreign institutional investor (FII) activity being key triggers, markets are expected to remain event-driven. Upcoming U.S. economic data and RBI commentary will be closely watched.
For long-term investors, experts recommend focusing on quality blue-chip stocks and fundamentally strong midcaps, while traders are advised to keep strict stop-losses due to heightened volatility.
