Indian equity indices experienced a significant rebound, surging by 1% on August 12, 2025, driven by positive cues from State Bank of India's (SBI) impressive first-quarter results and growing optimism surrounding a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin. This surge marks a recovery from losses incurred the previous week.
The positive movement was also fueled by short covering activities in anticipation of the Trump-Putin summit, with public sector undertaking (PSU) banks particularly gaining traction. The news of the upcoming meeting between Trump and Putin has raised hopes of a diplomatic breakthrough and a softer U.S. stance on trade.
Sectoral performance was broadly positive, with public sector banks leading the rally. On August 7, similar trends were observed with auto, pharma, metals, and energy sectors experiencing strong rebounds. The Nifty 50 and Sensex both saw significant gains.
However, despite the optimism, caution remains due to technical indicators and geopolitical factors, including the U.S. tariffs on Indian goods. The market is expected to remain range-bound, closely tracking developments around U.S.-Russia peace talks, India's response to U.S. tariffs, and the ongoing domestic earnings season. Investors are also closely monitoring the upcoming U.S.-Russia talks.
The Indian Rupee gained 5 paise, settling at 87.67 against the US dollar, supported by steady foreign inflows and a softening Dollar Index.
Furthermore, domestic institutional investors (DIIs) have provided crucial support, buying shares worth ₹10,864.04 crore, while foreign portfolio investors (FPIs) sold shares worth ₹4,997.19 crore. Investors also took the opportunity to buy quality stocks at dips.
Adding to the positive sentiment, several Indian companies are showing strong performance and attracting investments. Office space sharing company Awfis reported a 30% year-on-year surge in operating revenue, and the Indian GenAI startup ecosystem has raised substantial funding.
Overall, the Indian equity markets demonstrated resilience, balancing optimism with caution amid ongoing global trade tensions and geopolitical developments.
