The Sensex and Nifty go up because inflation is at an all-time low, which makes people feel better about the market.

The Indian stock market closed the day higher. People are feeling better, especially in the car, metal, and pharmaceutical sectors, because retail inflation fell sharply in July and global markets rose.

August 13, 2025, New Delhi, India: The Indian financial markets closed the day on a strong note. This was because there was favorable news about the economy and strong signals from around the world that made investors feel happy. The Sensex and Nifty indexes both went up at the end of the day. This was primarily because India’s headline inflation was coming down, which made people feel more optimistic in the market.

The Sensex rose 304.31 points, or 0.38%, to end the day at 80,539.91 points. The Nifty was up 131.95 points, or 0.54%, to close at 24,619.35 points.

The main reason for this hope was because India’s retail inflation, as measured by the Consumer Price Index (CPI), fell a lot to a seven-year low of 1.55% in July 2025. This record-low number has prompted expectations that people will start spending money again, which was seen in the industries that did the best. According to NSE data, businesses in the auto, media, metal, and pharmaceutical sectors did quite well that day.

Ajit Mishra, SVP of Research at Religare Broking Ltd., indicated that the market is robust, saying, “The last five sessions have been like a roller coaster for market participants, but we are seeing clear strength in some areas across sectors.”

Vinod Nair, who is in charge of research at Geojit Investments Limited, stated that the low CPI number had “raised hopes for a revival in discretionary spending, led by autos and metals.” He also said that India’s growth-inflation dynamics are still favorable for this financial year, even though there are doubts regarding the US-India trade deal and President Trump’s meeting with Russian President Putin on August 15.

The Sensex is still roughly 5,500 points off its all-time high of 85,978 points, even after today’s comeback. The Sensex has gone up approximately 2.6% this year, after going up about 9% to 10% last year.