Market wrap, August 11: Indices rebound from three-month lows; SENSEX surges 746 points, NIFTY reclaims 24,585

The Indian stock market closed with strong gains on Monday, August 11, amid a rally in the PSU bank stocks and fresh foreign fund inflows. The equity benchmark indices bounced back after both SENSEX and NIFTY fell to three-month lows in the previous session and posted their longest string of weekly losses in five years.

The NIFTY50 index reclaimed its important psychological level of 24,550 and touched an intraday high of 24,600.85. The SENSEX intraday high was at the 80,636.05 level.

Bullish sentiment among market participants was ignited after US President Donald Trump and Russian President Vladimir Putin agreed to hold talks on August 15 in Alaska to negotiate an end to the war in Ukraine. India welcomed the decision, and the Ministry of External Affairs, in a statement, said that India welcomes the understanding between the US and Russia for a meeting.

Meanwhile, on Friday, both the foreign institutional investors (FIIs) and the domestic institutional investors (DIIs) have bought equities worth ₹1,932.81 crore and ₹7,723.66 crore on a net basis, exchange data showed.

The foreign investors have pulled out nearly ₹18,000 crore from Indian equities so far this month, weighed down by escalating US-India trade tensions, disappointing first-quarter corporate earnings, and a weakening Indian rupee.

On the global front, indices in the Asian market ended mixed on Monday, a day ahead of US President Donald Trump's deadline for imposing higher tariffs on goods imported from China.

Hong Kong's Hang Seng ended 0.17% lower, and South Korea's KOSPI slipped 0.10%, while the Shanghai Composite gained 0.34%. Japan’s Nikkei 225 remained closed on Monday.

On Wall Street, stocks ended higher, with the Nasdaq closing at a record high for the second straight day on Friday as investors were optimistic about potential interest rate cuts.

The Dow Jones Industrial Average gained 206.97 points, or 0.47%, to end at 44,175.61; the S&P 500 rose 49.45 points, or 0.78%, to close at 6,389.45; while the Nasdaq Composite surged 207.32 points, or 0.98%, to settle at 21,450.02.

As many as 3,095 stocks traded on the NSE on Monday. Out of this, only 1,605 advanced, and 1,414 declined, while 76 scrips remained unchanged.

This indicated that the market breadth was in favour of advances.

A total of 54 stocks hit their 52-week highs, while 112 stocks touched their one-year lows. Besides, 83 stocks hit their upper circuit limits, and 94 touched their lower circuit bands on Monday.

NSE-listed firms' market capitalisation stood at ₹440.92 lakh crore at the end of the session.

The volatility index India VIX rose 1.53% to end at 12.22 levels.

Nifty PSU Bank soared 2.2% to take the lead among sectors, followed by Nifty Realty (1.86%), Nifty Auto (1.06%), Nifty Pharma (0.95%) and Nifty Private Bank (0.81%).

Nifty Consumer Durables was the only losing sector, falling 0.72% on Monday.

Adani Enterprises was the most contributing stock, jumping 4.23%. Tata Motors (3.2%), Eternal (2.69%), Grasim Industries (2.65%) and Apollo Hospitals (2.31%) were the other top gainers.

On the contrary, Hero MotoCorp (-0.76%), Bharat Electronics (-0.23%), Bharti Airtel (-0.18%), Bajaj Finance (-0.08%), Maruti Suzuki (-0.06%) and Titan (-0.01%) were the only laggards on the 50-share index.

The Nifty Midcap 100 index surged 0.85% to end at the 56,479 level. PB Fintech Limited (5.46%), One97 Communications (5.42%), and Supreme Industries (4.81%) were the biggest gainers.

Rallies in HBL Engineering (13.37%), Kalpataru Projects International (4.85%), and Afcons Infrastructure (4.71%) led the Nifty Smallcap 100 index to gain 0.36%, ending at 17,491.70 levels.