Sensex and Nifty Hold Ground Amid Global Uncertainty, S&P Upgrade, and WPI at 2-Year Low
Indian stock markets ended flat on Thursday (August 14, 2025) after a volatile session, as investors remained cautious ahead of the crucial U.S.-Russia talks between President Donald Trump and President Vladimir Putin. The markets took support from S&P’s sovereign credit rating upgrade for India after nearly two decades and a sharp drop in wholesale price inflation (WPI) to a two-year low.
Key Highlights of the Market Session
- Sensex closes marginally higher at 80,597.66, up 57.75 points (0.07%).
- Nifty gains slightly by 11.95 points (0.05%) to end at 24,631.30.
- S&P upgrades India’s sovereign credit rating to ‘BBB’ with stable outlook after 19 years.
- WPI inflation at (-) 0.58% in July — lowest in two years.
- FIIs net sellers, offloading ₹3,644.43 crore worth of equities.
- DIIs net buyers, purchasing ₹5,623.79 crore worth of stocks.
- Global markets trade mixed as investors eye geopolitical developments.
Sensex and Nifty End on a Flat Note
The 30-share BSE Sensex extended its gains for the second straight day, rising 57.75 points or 0.07% to close at 80,597.66. During the session, it touched an intraday high of 80,751.18, up by 211.27 points or 0.26%.
The 50-share NSE Nifty added 11.95 points or 0.05% to settle at 24,631.30.
Market analysts said that buying in select heavyweights and positive sentiment from the S&P rating upgrade provided support, but caution ahead of the Trump-Putin meeting capped further gains.
Top Gainers and Losers
Major Gainers on Sensex
- Eternal
- Infosys
- Asian Paints
- HDFC Bank
- Bajaj Finserv
- Titan Company
These stocks saw buying interest as investors rotated into defensive and quality names ahead of geopolitical developments.
Major Losers on Sensex
- Tata Steel
- Tech Mahindra
- Adani Ports
- Bharat Electronics
Weakness in metal and technology counters pulled the indices from their intraday highs.
Global Cues Keep Markets Cautious
The Trump-Putin meeting is being closely watched as it could have far-reaching consequences for energy markets, especially if there is any easing of sanctions against Moscow. Any shift in global oil supply dynamics could directly impact India’s import bill and inflation trajectory.
In Asia, South Korea’s Kospi ended higher, but Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng closed in the red. European markets traded mostly higher, while Wall Street ended positively on Wednesday (August 13, 2025), helping limit downside pressure in Indian equities.
S&P Upgrades India’s Sovereign Credit Rating
In a major positive for investor sentiment, S&P Global Ratings upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after nearly 19 years.
The agency cited:
- Strong economic growth momentum.
- Political will for fiscal consolidation.
- A conducive monetary policy stance aimed at keeping inflation in check.
Market experts believe the upgrade could attract more foreign investment inflows in the medium term.
Wholesale Price Inflation Hits 2-Year Low
India’s WPI inflation contracted for the second straight month, standing at (-) 0.58% in July 2025, its lowest level in two years.
The decline was driven by:
- Falling food prices.
- Lower fuel costs.
- A broad easing in commodity prices globally.
Economists say this could give the Reserve Bank of India (RBI) more room to maintain a growth-supportive stance.
FII and DII Activity
According to exchange data:
- Foreign Institutional Investors (FIIs) sold equities worth ₹3,644.43 crore on Wednesday (August 13, 2025), indicating risk aversion ahead of geopolitical events.
- Domestic Institutional Investors (DIIs) were net buyers, purchasing stocks worth ₹5,623.79 crore, providing crucial support to the markets.
This divergence highlights the role of domestic investors in cushioning market volatility.
Previous Session Recap
On Wednesday (August 13, 2025), the Sensex had surged 304.32 points (0.38%) to close at 80,539.91, while the Nifty jumped 131.95 points (0.54%) to settle at 24,619.35.
That rally was fueled by strong buying in banking and auto stocks, along with optimism from global markets.
Market Outlook
Market analysts say the near-term trend will depend on:
- The outcome of the U.S.-Russia talks.
- Global crude oil price movements.
- Corporate earnings reports for Q2.
- Further developments in domestic inflation and policy stance.
Given the flat close, traders are likely to remain in wait-and-watch mode until more clarity emerges on the geopolitical front.
Key Takeaways for Investors
- Stay cautious ahead of high-impact geopolitical events.
- Keep an eye on energy and commodity prices, which could influence inflation.
- Positive rating action from S&P could attract long-term foreign investments.
- Domestic institutions remain a strong market support pillar.
- Lower WPI inflation offers a macro-economic cushion for growth.
Conclusion
The Indian stock markets ended on a steady note despite volatility, as global geopolitical events and domestic macroeconomic factors balanced each other out. While S&P’s rating upgrade and a sharp fall in WPI inflation were positives, caution prevailed ahead of the high-stakes Trump-Putin meeting. For now, investors are holding their positions, awaiting fresh triggers that could set the next directional move for the markets.
