The Indian equity markets staged a positive turnaround on Monday, August 4, 2025, closing in green after a challenging week. The rebound was largely driven by a strong performance across most sectors, with Metals, IT, and Auto leading the charge. Investor sentiment was bolstered by the commencement of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, with hopes for a dovish stance despite global uncertainties. While US tariffs continue to cast a shadow, domestic institutional support remained robust, underlining the market's evolving resilience. This wrap-up provides a comprehensive overview of the market's performance, key news, institutional activity, IPO updates, and the economic factors influencing investor sentiment.
Table of Contents
- Nifty and Sensex Today – Key Market Indices Performance
- Sector-wise Performance
- Top Stock Market News of the Day – What Moved the Markets
- FII and DII Activity Today – Where Big Money Moved
- IPOs, Listings and Market Buzz – Latest Stock Market Trends
- Top Gainers and Losers – Best and Worst Performing Stocks
- Economic and Global Factors – What Else Affected Markets Today
- What to Watch in the Coming Day/Days – Key Events
- Final Takeaway – Summary of Stock Market Day
The Indian equity benchmarks, the Sensex and Nifty 50, witnessed a welcome recovery on Monday, August 4, 2025, ending the session higher after a prolonged losing streak. The positive sentiment was primarily fueled by broad-based buying interest and anticipation surrounding the RBI's MPC meeting.
The BSE Sensex closed at 81,018.72, gaining 418.81 points, representing a rise of 0.52%. During the session, the Sensex traded within a range, reaching a high of 81,192.10 and a low of 80,685.30.
Similarly, the NSE Nifty 50 settled at 24,722.75, climbing 157.40 points, an increase of 0.64%. The Nifty 50 swung between an intraday high of 24,795.50 and a low of 24,605.10.
This positive close breaks the recent downtrend, providing some relief to investors.
The Indian stock market today, August 4, 2025, displayed a predominantly positive sectoral performance, with most indices closing in the green, signalling a shift in investor confidence and a broad-based recovery.
Outperforming Sectors:
- Nifty Metal: This sector emerged as the top gainer, closing with a significant +2.48% increase at 9,327.85. This strong performance was primarily driven by positive sentiment surrounding the metal industry, including robust earnings expectations and potentially easing concerns over global trade policies.
- Nifty Realty: This sector demonstrated a notable increase of +1.77%, rising to 912.05. The realty sector's strong showing reflects continued positive momentum in real estate demand and likely investor confidence in the sector's growth trajectory.
- Nifty Auto: This sector followed suit, gaining +1.61% to 23,787.50. The auto sector's rise can be attributed to optimistic sales figures and a positive outlook for the upcoming festive season, boosting investor confidence in the automotive industry.
- Nifty IT: This sector also saw a strong rebound, closing higher by +1.60% at 35,203.35. The IT sector's recovery indicates renewed investor interest, possibly due to a favourable currency movement or a re-evaluation of its long-term growth prospects after recent corrections.
- Nifty Media: This sector gained +1.51% to 1,641.15. The positive movement in the media sector suggests a return of investor appetite for this segment, potentially on the back of improving advertising revenues or specific company developments.
- Nifty PSU Bank: This sector gained +1.26% to 6,858.90. PSU banks showed a healthy rally, possibly driven by expectations of a supportive policy environment or positive credit growth outlooks.
- Nifty Pharma: After some recent declines, this sector saw a modest gain of +0.65% to 22,153.80. While not a top gainer, the positive close indicates some stability returning to the pharmaceutical sector.
- Nifty Energy: This sector eased higher by +0.10% to 34,923.45. The energy sector experienced a marginal positive close, in line with stable global energy prices.
Underperforming/Lagging Sectors:
- Nifty Fin Service: This sector closed marginally lower by -0.06% at 26,476.60, remaining largely flat. The cautious movement in the financial services sector, which includes major banks, likely reflects anticipation and uncertainty ahead of key economic data or policy decisions.
- Nifty FMCG: This was the sole major sector to close in the red, with a marginal decline of -0.10% to 56,139.65. This suggests some profit-booking after its defensive rally last week, as investors shifted focus to more cyclical or growth-oriented sectors.
Note on Broader Market Indices:
While not explicitly provided in the data, the strong performance across most sectoral indices suggests that broader market indices such as the Nifty Midcap 100 and Nifty Smallcap 100 also likely ended in positive territory, reflecting the overall optimistic sentiment in the market.
Today, the Indian stock market's positive momentum was primarily driven by a collective sigh of relief and renewed optimism. The commencement of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, set to conclude on August 6th, generated expectations of a dovish stance, possibly a pause or even a final rate cut in October, given the moderating inflation and signs of a softening domestic economy.
This overshadowed, to some extent, the lingering concerns from the 25% US tariffs on Indian imports, which officially took effect on August 1st. While the tariffs remain a significant long-term headwind, market participants seem to be absorbing the initial shock, with some reports suggesting a potentially "minimal effect" on overall Indian exports as over half of them are expected to remain unaffected due to US exemptions. The softer US jobs report for July 2025, showing a sharp slowdown in hiring and a rise in unemployment, also fueled hopes of a less aggressive Federal Reserve globally, contributing to improved risk appetite.
Foreign Institutional Investors (FIIs) continued their selling streak in the Indian equity markets on August 4, 2025, but at a significantly reduced pace compared to last week, with provisional data indicating net sales of ₹550.80 crore. This marks a moderation in their outflow, suggesting some easing of selling pressure.
In contrast, Domestic Institutional Investors (DIIs) remained consistent net buyers, recording a robust net inflow of ₹2,210.15 crore (provisional). This sustained DII buying continued to provide a crucial cushion to the market, further solidifying the trend of domestic capital increasingly steering market stability and absorbing foreign outflows. The FII:DII ownership ratio is now firmly below parity, indicating a structural shift in market ownership dynamics.
The Initial Public Offering (IPO) market remained active, with new issues opening for subscription and others preparing for allotment.
NSDL IPO Allotment Today The allotment for the National Securities Depository Limited (NSDL) IPO, which concluded its subscription on August 1st with robust demand (subscribed 41.02 times overall), is tentatively scheduled for today, August 4, 2025. Investors are keenly awaiting the allotment status.
New IPOs Opened Today:
- Parth Electricals and Engineering IPO: This SME IPO opened for subscription today, aiming to raise ₹49.72 crore. The issue is priced at ₹160 to ₹170 per share and has garnered attention due to its strong financial growth and expansion plans.
- Essex Marine IPO: Another SME IPO, Essex Marine, also opened today, looking to raise ₹23.01 crore at ₹54 per share. Initial grey market premium (GMP) trends indicate potential listing gains.
- Jyoti Global Plast IPO: This SME IPO, aiming to raise ₹35.44 crore at ₹62-₹66 per share, also opened for subscription today.
- Aaradhya Disposal Industries IPO: This SME IPO, aiming to raise ₹45.10 crore at ₹110-₹116 per share, also opened for subscription today.
Upcoming Allotments: Several other IPOs that closed last week, including Sri Lotus Developers, Takyon Networks, B.D. Industries, and M&B Engineering, also have their allotment dates tentatively scheduled for today, August 4, 2025.
Top Gainers on August 4, 2025
The Indian stock market's positive close on Monday, August 4, 2025, was led by several key performers across various sectors. Here's a breakdown of the top gainers and the factors contributing to their rise:
- Hero Motocorp
- Closing Price: ₹4,535.90
- Change: +₹224.30 (+5.20%)
- Analysis: Hero Motocorp emerged as the top gainer, experiencing a significant jump of over 5%. This surge was primarily driven by the company's robust sales performance for July 2025. Hero MotoCorp announced a 21% year-on-year (YoY) growth in dispatches, selling 449,755 units of motorcycles and scooters. Both domestic sales and exports saw impressive increases, with scooter sales notably surging by over 64% YoY. The company's electric vehicle brand, VIDA, also achieved its highest-ever monthly performance, doubling its EV market share. These strong operational numbers, coupled with anticipation for the upcoming festive season, boosted investor confidence.
- Tata Steel
- Closing Price: ₹159.56
- Change: +₹6.55 (+4.28%)
- Analysis: Tata Steel saw a strong rebound, gaining over 4%. This was largely in line with the overall positive performance of the Nifty Metal index, which was the top-performing sector today. The stock had experienced some pressure recently due to concerns over US tariffs on Indian imports. However, today's rally suggests investors are reassessing the impact, potentially believing the effect might be less severe than initially feared. The company had also reported a robust 116% YoY jump in consolidated net profit for Q1 FY26 (results announced last week), which likely continues to underpin its valuation.
- Bharat Electronics (BEL)
- Closing Price: ₹389.55
- Change: +₹12.35 (+3.27%)
- Analysis: Bharat Electronics, a prominent public sector undertaking in the defence electronics sector, gained over 3%. While there wasn't specific fresh news released today that directly caused the jump, the stock has been a strong performer over the past year due to increased defence spending and a robust order book. Today's rise could be attributed to a general positive sentiment towards public sector enterprises (PSEs) and continued investor confidence in India's defence and electronics manufacturing capabilities. The stock had seen some profit booking recently, so today's movement could also be a bounce back.
- Adani Ports and Special Economic Zone (APSEZ)
- Closing Price: ₹1,388.90
- Change: +₹41.80 (+3.10%)
- Analysis: Adani Ports rallied over 3%, marking a notable trend reversal after three consecutive days of decline. The stock's performance today suggests renewed interest from investors ahead of its Q1 FY26 results, which are scheduled for tomorrow, August 5th. Positive expectations regarding its diversified port operations and infrastructure development, despite recent broader market volatility, likely attracted buyers. The company is India's largest private multi-port operator, and its strategic importance continues to draw investor attention.
- JSW Steel
- Closing Price: ₹1,055.90
- Change: +₹28.10 (+2.73%)
- Analysis: JSW Steel, another major player in the metal sector, advanced nearly 2.75%. The stock's positive momentum was significantly boosted by the company's announcement of a major expansion plan in collaboration with Japanese steel giant JFE Steel Corporation. The joint ventures will invest ₹5,845 crore to expand their cold rolled grain-oriented (CRGO) electrical steel capacity to 350,000 tons per annum (TPA) across two Indian plants. This strategic investment is aimed at meeting the rapidly growing domestic demand for high-grade electrical steel, aligning with "Make in India" and "Atmanirbhar Bharat" initiatives, and reducing reliance on imports. This forward-looking expansion signals strong demand visibility and potential for enhanced margins in value-added segments, driving investor optimism.
Top Losers on August 4, 2025
Despite the overall positive market sentiment on Monday, August 4, 2025, some stocks experienced profit booking or faced specific headwinds, landing them on the list of top losers. Here's a closer look at their performance:
- Power Grid Corporation of India
- Closing Price: ₹288.00
- Change: -₹3.25 (-1.12%)
- Analysis: Power Grid Corp was among the top losers today, declining over 1%. The primary reason for this fall appears to be its recently announced Q1 FY26 results (released on July 30th), which showed a 2.5% year-on-year (YoY) drop in consolidated net profit to ₹3,630.58 crore. While revenue saw a marginal rise, higher expenses impacted profitability. This profit decline, coupled with the stock's recent strong performance, likely triggered some profit booking. Despite the dip, the company's long-term outlook remains stable due to consistent government spending on transmission infrastructure.
- HDFC Bank
- Closing Price: ₹1,991.40
- Change: -₹20.80 (-1.03%)
- Analysis: HDFC Bank, a heavyweight in the banking sector, saw a decline of over 1%. While the overall market rebounded, the banking sector remained largely muted, possibly due to caution ahead of the RBI's Monetary Policy Committee (MPC) decision later this week. Additionally, HDFC Bank's subsidiary, HDB Financial Services, experienced a fall below its IPO price today after reporting increased Non-Performing Assets (NPAs) and credit costs in its Q1 FY26 results (released on July 15th). The challenges faced by its subsidiary, along with broader sector-specific caution, likely contributed to the negative sentiment around HDFC Bank.
- ONGC (Oil & Natural Gas Corporation)
- Closing Price: ₹234.80
- Change: -₹1.99 (-0.84%)
- Analysis: ONGC experienced a marginal decline today. Despite overall stability in global crude oil prices, the stock might have faced some profit booking after a recent period of relatively stable performance. The increase in Open Interest (OI) for ONGC, indicating heightened trading activity in its futures, coupled with the stock trading below key moving averages, suggests a bearish short-term trend in the derivatives market. This might have put some pressure on the stock, as traders anticipate further downward movement or consolidate their positions.
- Apollo Hospitals Enterprise
- Closing Price: ₹7,308.00
- Change: -₹43.50 (-0.59%)
- Analysis: Apollo Hospitals saw a modest decline of almost 0.6%. While no specific negative news was released today, the stock had a 52-week high earlier in July. This dip could be a result of profit booking after its recent rally, especially as investors re-evaluate valuations. The healthcare sector, while fundamentally strong, can sometimes see rotational shifts of capital to other sectors that are showing stronger momentum.
- ICICI Bank
- Closing Price: ₹1,463.50
- Change: -₹8.10 (-0.55%)
- Analysis: Similar to HDFC Bank, ICICI Bank also ended the day in the red, albeit with a smaller loss. The broader Nifty Bank index remained largely flat, indicating a cautious approach by investors in the banking sector ahead of the RBI's MPC meeting. There was no specific company-centric negative news for ICICI Bank today. The decline is likely attributed to general sector-wide hesitation and potential profit booking in line with other large private banks.
Beyond the direct impact of corporate earnings and institutional flows, several broader economic and global factors influenced the Indian market today.
- RBI MPC Meeting Commenced: The three-day Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) began today, with the outcome expected on August 6th. The market is keenly awaiting signals on the future trajectory of interest rates, especially after the RBI's previous 50 basis point repo rate cut in June. Most economists anticipate a "dovish pause" or a final 25 bps cut in October, given softening domestic inflation and weaker credit growth.
- US Jobs Report (July 2025): The US jobs report for July 2025, released over the weekend, indicated a significant slowdown in hiring, with only 73,000 jobs added and the unemployment rate rising to 4.2%. This softer labour market data has fueled expectations of a less aggressive stance from the US Federal Reserve regarding future rate hikes, which generally bodes well for global equity markets.
- US Tariffs on India: The 25% tariff on Indian imports, which became effective on August 1st, remains a key concern. While the immediate market reaction today was positive, the long-term implications, especially for sectors like electronics, pharmaceuticals, and refined petroleum, are still being assessed. Reports from Indian government sources suggest a "minimal effect" on overall exports due to exemptions, but a full impact assessment will take time.
- Global Market Performance: Asian markets mostly showed a positive trend today, contributing to the improved sentiment in India. European markets also opened higher, reflecting a broader global rebound.
- Crude Oil Prices: Crude oil prices remained stable, with Brent crude hovering around $71.70-$72.00 a barrel. This stability provides some relief, avoiding additional inflationary pressures.
- Indian Rupee: The Indian Rupee showed some stability today after recent depreciation, hovering around 87.55-87.65 against the US dollar. This can be attributed to the overall improved market sentiment and sustained DII inflows.
Investors will remain vigilant as several key events and economic data releases are anticipated in the coming days and week.
- RBI MPC Decision (August 6, 2025): The most anticipated domestic event is the outcome of the Reserve Bank of India's Monetary Policy Committee (MPC) decision on Wednesday, August 6, 2025. The market will be closely watching for any changes in the repo rate and the RBI's forward guidance on inflation and growth.
- Q1 FY26 Earnings Season: The earnings season continues to be a major driver of stock-specific movements. Several major companies, including Bharti Airtel, Adani Ports and Special Economic Zone, and Berger Paints India, are scheduled to announce their Q1 FY26 results on August 5th. Bajaj Auto, Trent, and Hero Motocorp will follow on August 6th.
- HSBC Composite and Services PMI Final (August 5, 2025): These economic data points will provide further insights into India's services sector and overall economic activity for July.
- Global Trade Developments: Any further statements or developments regarding US-India trade talks and the implementation of tariffs will continue to be closely monitored.
The Indian stock market on August 4, 2025, experienced a positive bounce, with the Sensex up 0.52% at 81,018.72 and the Nifty 50 up 0.64% at 24,722.75. The rebound was driven by broad-based buying across most sectors, notably Metals, IT, and Auto, fueled by optimism surrounding the ongoing RBI MPC meeting and a softer US jobs report.
Domestic Institutional Investors (DIIs) continued their strong buying, with net inflows of ₹2,210.15 crore, effectively absorbing the reduced selling by Foreign Institutional Investors (FIIs) at ₹550.80 crore. This sustained DII support underscores the growing self-reliance of the Indian market.
The IPO market remained vibrant, with NSDL's allotment eagerly awaited and several new SME IPOs, including Parth Electricals and Engineering and Essex Marine, opening for subscription.
Looking ahead, the RBI's MPC decision on August 6th and the ongoing Q1 FY26 earnings season will be critical domestic catalysts. Global trade tensions, particularly concerning US tariffs, will also remain a significant factor for investors to monitor.