Indian benchmark indices, Sensex and Nifty, began the day on a positive trajectory, mirroring gains seen across Asian markets. As of today, August 13, 2025, the Sensex gained over 200 points, and the Nifty is trading above 24,550. This surge in the Indian stock market is primarily attributed to two key factors: encouraging U.S. retail inflation data and easing domestic price pressures.

Softer U.S. retail inflation figures have boosted expectations of a potential Federal Reserve rate cut in September. The S&P 500 and Nasdaq closed at record highs as expectations for July inflation data fueled optimism over a potential Federal Reserve rate cut next month. Lower U.S. rates typically enhance the appeal of emerging market equities, including India, as yields on U.S. Treasuries fall.

Furthermore, easing domestic inflation has further bolstered investor confidence. India's retail inflation dropped to an eight-year low of 1.55% in July, slipping below the Reserve Bank of India's 2%-6% band, driven by falling food prices.

In terms of individual stock performance, Nykaa has experienced a rally of 5%, while Apollo Hospitals has gained 4%. Apollo Hospitals climbed 5.4% after posting a rise in June quarter profit, aided by higher patient volume. Nykaa jumped 3.7% after reporting a two-fold rise in quarterly profit on beauty products demand.

Globally, Asian markets have also shown positive trends. Japan's Nikkei share average topped 43,000 for the first time ever. Japan's Topix rose 0.9%, Hong Kong's Hang Seng rose 1.8%, and the Shanghai Composite rose 0.5%. However, Australia's S&P/ASX 200 fell 0.5%. S&P 500 futures were little changed. Euro Stoxx 50 futures rose 0.3%.

Overall, the Indian stock market is currently experiencing a positive phase, driven by both domestic and global factors. Investor sentiment is optimistic, and the market is expected to remain bullish in the near term.