Stock Market Live: Sensex surges 419 pts to reclaim 81K level; Nifty ends at 24,722

The domestic equity market edged higher, supported by strong performance in the metal and auto sectors. A weakening U.S. dollar, along with robust monthly auto sales and encouraging quarterly results from leading automakers, helped renew investor interest in these sectors, said Vinod Nair, Head of Research, Geojit Investments.

He said the Q1 earnings summary indicates that consumption-driven companies are benefiting from a rebound in volume demand. Meanwhile, rising unemployment and slower job creation in the U.S. have reinforced expectations of a potential FED rate cut. “However, there still remains room for caution due to high U.S. tariffs,” he added.

The market’s positive closing was fuelled by robust buying in metal and auto stocks, improved global cues, and renewed optimism ahead of major corporate earnings and the upcoming RBI policy announcement, said Vaibhav Vidwani, Research Analyst at Bonanza.

“A key catalyst for today’s gains was relief in global risk sentiment, as Asian markets partially recovered and US index futures stabilized after recent volatility. Investors shrugged off concerns about new US tariffs following a softer jobs report in America, which revived hopes for a potential US Federal Reserve rate cut next month,” he said.

Domestically, key FMCG players and select auto majors like Hero MotoCorp delivered strong performances, while cyclicals such as metal stocks led the advances due to optimistic demand outlooks, Vidwani said.

Ending two sessions gaining streak, Indian benchmark indices ended higher on Monday, tracking firm cues from global cues. The BSE Sensex rose 419 points to end above crucial level of 81,000 to 81,019, and the NSE Nifty added 157 points to end higher at 24,722.75.  

Shares of metal companies witnessed strong buying on Monday, with index heavyweights Tata Steel, Jindal Steel and Power (JSPL), NMDC, JSW Steel, Hindalco Industries, Vedanta, National Aluminium Company, and Steel Authority of India (SAIL) rising up to 4%. The Nifty Metal index also rose nearly 3% during the session today.

The rally in metal stocks were driven by rising demand for domestic steel in the backdrop of growing infrastructure projects, affordable housing, railways, ports, highways and other sectors.

Extending opening gains, Indian benchmark indices were trading near its day's high levels in the final hour of trade. The BSE Sensex was up 430 points to reclaim 81,000 level, while the Nifty jumped 150 points to cross 24,700 mark.

NSDL's share allotment is expected to be finalised today. The IPO has, so far, received very positive response from investors.

Shares of logistics firm Delhivery surged over 5% on 4 August, scaling a 52-week high of ₹452.55, after the company posted a solid set of numbers for the June quarter. The performance, riding on operational efficiency and strong volume growth, has renewed optimism among investors and analysts alike, who now see better days ahead for the tech-driven delivery major.

Logistics firm Delhivery saw its shares surge almost 6% on the back of robust Q1 earnings, that came in on Friday. As of 12.00 noon, the scrip was trading at ₹455.15, up 5.89%.

India VIX is a market indicator that measures the expected volatility of the Nifty 50 index over the next 30 days. It is calculated based on the prices of out-of-the-money options traded on the NSE. A higher India VIX value generally indicates a higher perceived risk in the market.

Technically, on daily charts, the market is holding a lower top formation, and on weekly charts, it has formed a bearish candle. Additionally, the market is comfortably trading below the 50-day and 20-day Simple Moving Averages (SMA), which is largely negative.

"We believe that the short-term market outlook is weakening; however, a fresh selloff is possible only if the 24,500/80400 level is broken below. If that happens, the market could slip to around 24,350/80200," said Shrikant Chouhan, Head Equity Research, Kotak Securities.

For Bank Nifty, as long as it remains below 56,100, a weak formation is likely to persist, he said. A decline below this level could see it slipping to 55,000–54,700. On the higher side, if it crosses above 56,100, it could bounce back toward the 50-day SMA or reach 56,500, with potential resistance at the 20-day SMA around 56,700.

On the BSE Sensex pack, 22 out of 30 stocks were trading in the green zone, led by BEL, Tata Steel, Bajaj FinServ, Adani Ports, and Asian Paints.

On the other hand, Infosys, Tech Mahindra, HCL Tech, Eternal (Zomato), and Power Grid were among the top losers.

Foreign portfolio investment (FPI) has been relentlessly selling Indian stocks, offloading equities worth ₹31,988 crore through the exchanges in July. On a year-to-date basis, they sold equities worth ₹1,31,876 crore. However, the FPI strategy of buying through the primary market continued in July also with a monthly buy figure of ₹14,247 crores. This takes the total investment of FPIs through the primary market for 2025 to ₹36,235 crore, as per NSDL data.

This is a steady trend reflecting the FPI preference for fair valuations, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. 

“President Trump’s tariff tantrums imposing 25 percent tariff on Indian goods and an unspecified penalty for trade in energy and defence goods with Russia was unexpected and therefore has impacted market sentiments in the short-term. The sharp appreciation in the dollar index to 100 is another negative which can impact FPI inflows in the near-term,” said VK Vijayakumar.

He said that the market perception is that after the initial chaos there will be a deal between India and U.S. after the next round of negotiations. A steady trend of FPI flows will emerge after the dust settles.