Indian Markets Rally as Inflation Hits Eight-Year Low

On Wednesday, Indian stock benchmarks made notable gains, fueled by a further decline in inflation and strategic buying at lower levels. The Sensex closed at 80,539.91, rising by 304.31 points or 0.38 percent, while the Nifty increased to 24,619.35 points, up by 131.95 points or 0.54 percent.

The day's top performers included companies in the auto, media, metal, and pharma sectors, according to NSE data. Notably, India's retail inflation rate, as gauged by the Consumer Price Index (CPI), plummeted to 1.55 percent in July 2025, the lowest since June 2017.

Despite ongoing uncertainties related to a U.S. trade deal imposing significant tariffs on Indian goods, the equity markets displayed resilience. Ajit Mishra from Religare Broking highlighted the market's volatility but noted specific sector strengths. Echoing this sentiment, Vinod Nair of Geojit Investments cited the CPI drop as a catalyst for optimism, potentially revitalizing sectors like autos and metals.