Indian Market Rebounds Amidst Tariff Concerns

By Mandar in Indian Market Insights —

Indian Stock Market Rebounds After a Six-Week Losing Streak

The Indian stock market saw a recovery on August 11, 2025, ending its longest losing streak of six weeks. The Sensex increased by 746 points (0.93%), closing at 80,604, and the Nifty gained approximately 0.41% to almost 24,600.

This recovery followed substantial losses caused by rising tariff worries from the US government.

Key Factors Driving Market Movement

  • Value buying: Investors recognized chances at lower valuations after continuous declines despite the uncertainty caused by US trade tariffs.
  • FIIs: Foreign Institutional Investors became net buyers with significant inflows, indicating a potential pause or reversal in the selling trend.
  • Sector Performance:
    • Positive: Pharma, PSU banks, and realty sectors saw gains of about 1% each.
    • Lagging: Consumer durables underperformed.
  • Technical Levels:
    • The Nifty recovered the important level of 24,450, which had previously been breached.
    • Resistance is present near the 100-day Exponential Moving Average (DEMA) at 24,590.
    • A drop below 24,200-24,150 may result in more selling pressure, matching 200-DEMA support zones.
  • Intraday Time Clusters: Market volatility was anticipated at key intraday times such as 9:20 AM, 10:45 AM, 12:25 PM, and 2:50 PM on August 11, which may lead to trading opportunities or reversals.

Further details included brokerage downgrades and the RBI's hawkish stance on inflation, which continue to worry investors. The Indian rupee also weakened to 87.58 per USD due to global trade tensions.

Major Gainers and Laggards

  • Gainers: Adani Enterprises, Tata Motors, and SBI
  • Laggards: ICICI Bank and Hero MotoCorp

Overall Outlook

While the short-term outlook remains cautious due to tariff risks and inflation concerns, the rebound on August 11 indicates some optimism driven by value buying and technical support levels.