Indian equity markets staged a powerful comeback on Monday, August 11, with benchmark indices posting their strongest single-day gains in nearly seven weeks. The rally was driven by heavyweight stocks, short covering by foreign investors, and renewed optimism ahead of a high-stakes geopolitical summit.
Key Market Highlights
| Index | Closing Value | Gain (Points) | Gain (%) |
|---|---|---|---|
| Sensex | ₹80,604.08 | +746.29 | +0.93% |
| Nifty 50 | ₹24,585.05 | +221.75 | +0.91% |
Market Cap Surge: BSE-listed firms added ₹3.4 trillion in value, pushing total market capitalization to ₹444 trillion.
The benchmark BSE Sensex jumped 746 points (0.9%) to settle at 80,604, while the NSE Nifty soared 222 points (0.9%) to close at 24,585 — the best performance for both indices since June 26. The rally added a whopping ₹3.4 trillion to the market capitalisation of BSE-listed firms, taking the total to ₹444 trillion.
Market experts attributed the gains not just to buying in blue-chip counters, but also to short covering by foreign portfolio investors (FPIs). As of August 8, the FPI long-short ratio in index futures stood at a meagre 8.28% — indicating an extreme bearish position before Monday’s reversal. Such positioning often acts as fuel for rallies when sentiment shifts, triggering rapid covering of shorts.
Among top movers, HDFC Bank gained 1.2%, Reliance Industries advanced 1.4%, and SBI surged 2.5% after reporting a robust 12.5% year-on-year rise in Q1FY26 net profit to ₹19,160 crore, aided by treasury gains.
However, Monday’s cheer comes against a backdrop of sustained weakness. Both the Sensex and Nifty had suffered six consecutive weeks of declines — the longest losing streak since April 2020 — driven by muted corporate earnings and escalating trade tensions with the US.
Last week, US President Donald Trump slapped a fresh 25% tariff on Indian exports, citing New Delhi’s continued oil imports from Russia. The move further soured ties, coming on top of earlier tariff hikes and sharp rhetoric on regional security. Trade talks remain stalled, with Washington pressing for greater access to India’s agricultural and dairy markets — a demand New Delhi has resisted. Analysts warn this deadlock is eroding India’s competitiveness against rivals like Vietnam and Bangladesh in global exports.
On the geopolitical front, investors will be closely watching the upcoming Trump-Putin meeting later this week for clues on potential shifts in the Russia–West standoff, which could indirectly impact India’s trade dynamics.
From a technical perspective, Sudeep Shah, head of technical & derivatives research at SBI Securities, noted that while Monday’s rally was encouraging, “a decisive follow-up move” is essential to sustain momentum. The 24,700–24,740 zone is expected to act as stiff resistance for Nifty, with a breakout potentially propelling the index toward 24,900. On the downside, the 24,400–24,440 range will serve as a key support area.
Market breadth also turned positive, with 2,181 stocks advancing against 1,983 declines, indicating broad-based participation in the upswing.
