Sensex Rallies 317 Points, Ends 4-Day Losing Streak as Retail Inflation Drops to 6-Year Low

Mumbai, July 15, 2025 – Indian equity markets staged a convincing rebound on Tuesday, snapping a four-session losing streak as retail inflation cooled to a six-year low of 2.1% in June—the Mildest inflation rate since January 2019. The significant drop in CPI, driven by easing food prices- bolstered hopes of further RBI rate cuts, prompting renewed investor interest in cyclical sectors.

Auto and pharmaceutical stocks led the charge, with the Nifty50 advancing to around 25,200 and the Sensex jumping approximately 317–450 points. However, gains were somewhat tempered by hesitation in the IT sector following HCLTech’s weak margin outlook, while broader market trends were supported by strength in mid- and small-caps.

Key Highlights

• Sensex gains 317 points, ends at 82,570.91
• Nifty climbs 113 points to close at 25,195.80
• Retail inflation falls to 2.1% in June, a more than six-year low
• Auto and pharma stocks rally, HCL Tech drops on weak Q1 earnings

Markets Bounce Back After Four-Day Decline

The 30-share BSE Sensex surged 317.45 points, or 0.39%, to settle at 82,570.91. During intraday trade, it rose as much as 490.16 points to touch 82,743.62. Meanwhile, the broader NSE Nifty advanced by 113.50 points, or 0.45%, closing at 25,195.80.

This recovery comes after the Sensex and Nifty lost 1.74% and 1.72%, respectively, over the previous four sessions.

Top Gainers and Laggards

Gainers:

Strong buying was seen in

• Sun Pharma
• Trent
• Tata Motors
• Bajaj Finserv
• Mahindra & Mahindra
• Bajaj Finance

The uptrend was largely supported by sectoral tailwinds and improving investor sentiment.

Laggards:

• HCL Technologies
• Tata Steel
• Kotak Mahindra Bank
• Axis Bank
• Eternal

Inflation Data Fuels Optimism

India’s retail inflation fell steeply to 2.1% in June from 2.82% in May and 5.08% in June 2024. It cooled due to the easing of food prices and a well-spread monsoon. The number is now close to the Reserve Bank of India’s target band, which has generated hopes of a possible interest rate reduction in future policy reviews.

Global and Institutional Cues

Global sentiment remained supportive:

• Asian markets largely ended higher, with gains in Kospi, Nikkei 225, and Hang Seng, while Shanghai Composite declined.
• European markets were trading in positive territory.
• US markets closed higher on Monday

On the institutional front, FIIs were net sellers, offloading ₹1,614.32 crore worth of equities on Monday, while DIIs were net buyers, purchasing shares worth ₹1,787.68 crore.

Brent crude slipped 0.17% to USD 69.09 per barrel, further aiding market sentiment.

Outlook

With inflation easing and speculation building around a possible interim trade deal with the US, analysts believe the macro backdrop is improving. Investors will be closely watching upcoming corporate earnings and RBI policy cues for further direction.

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