Thursday’s stock market session delivered a rollercoaster experience for investors. What began as a day clouded by geopolitical concerns ended on an optimistic note, with benchmark indices rebounding dramatically. The Sensex, which had plunged more than 700 points in early trade due to concerns over the newly imposed US tariffs on Indian imports, clawed back to end the day with a gain of 80 points, closing at 80623. The Nifty 50 also erased all its intraday losses to settle just below the 24600 mark, gaining 22 points.
Much of this recovery was credited to breaking reports indicating possible diplomatic talks between US President Donald Trump, Russian President Vladimir Putin, and Ukrainian President Volodymyr Zelensky. This development lifted investor sentiment, prompting a sharp late-session rally across key sectors. The renewed optimism boosted stocks in the auto, pharmaceutical, metal, and energy sectors, helping both indices recover from steep losses earlier in the day.
Vinod Nair, Head of Research at Geojit Investments, said the sharp comeback reflected the market’s confidence in a positive resolution to current trade tensions. The news of peace talks came just in time to offset the sell-off caused by Trump’s announcement of an additional 25 percent tariff on Indian imports. With volatility expected to persist during the coming days, investors found solace in institutional support and the potential for international diplomacy to calm markets.
The Nifty Bank Index ended 110 points higher at 55521, while the BSE Midcap index surged by 137 points, outperforming the broader market. However, the BSE Smallcap index declined slightly, finishing 92 points lower. Despite the rebound, overall market breadth remained negative with more declining stocks than gainers. Out of 3071 trading stocks on the BSE, 2128 declined, 846 advanced, and 97 remained unchanged.
Sectoral performance showed mixed trends. The internet and ecommerce space witnessed sharp buying interest, even as other sectors such as fertilisers, rubber, agriculture, and paper underperformed. Infrastructure and textiles also lagged behind, but auto and technology counters led the recovery rally.
Among the top gainers on the Nifty 50 were Hero MotoCorp, which soared over four percent, followed by Tech Mahindra, JSW Steel, Zomato, and Wipro. On the flip side, Adani Enterprises emerged as the biggest loser, shedding over two percent, with Adani Ports, Grasim, Hindustan Unilever, and Trent also witnessing selling pressure.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, noted that while the market reacted sharply to the positive cues, investors should brace for continued volatility. The next phase will depend on how US India trade negotiations proceed and whether geopolitical tensions ease in the coming weeks. He added that institutional inflows and clarity from the upcoming US delegation visit to India on August twenty fourth will shape short term market direction.
Investor wealth saw a marginal increase by the close of trade, signaling that despite prevailing global uncertainties, the Indian market remains fundamentally strong. With midcap resilience and continued policy support, experts believe the domestic outlook could stabilize further if diplomatic progress continues on the global front.
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