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The Indian stock market staged a broad-based rebound on Monday, August 4, snapping a two-day losing streak on the back of positive global cues and a softer US dollar.

The Sensex climbed 419 points, or 0.52%, to close at 81,018.72, while the Nifty 50 advanced 157 points, or 0.64%, to settle at 24,722.75.Broader market indices outperformed the benchmarks. The BSE Midcap index surged 1.11%, while the Smallcap index gained 0.76%.

Stop loss: ₹2,840.

On Monday, 4 August, India’s benchmark equity indices staged a strong rebound, with the Sensex climbing from its intraday low and the Nifty inching closer to the 24,700 mark. The Sensex ended 447.16 points higher at 81,047.06, while the Nifty closed at 24,726.90, up 161.55 points. The rally was driven by gains in metal and auto stocks, buoyed by positive regional cues and supportive currency dynamics.

Auto stocks led the advance, with the Nifty Auto index rising 1.1% following upbeat quarterly earnings from TVS Motor Company and a 21% year-on-year jump in July dispatches for Hero MotoCorp, which gained over 2%.

Metals also posted strong gains, with the Nifty Metal index up 1.6% as a weaker US dollar boosted the appeal of commodities among overseas buyers. Fourteen of the index’s 15 constituents ended in the green. Sector heavyweights including Bharat Electronics, Tata Steel, Eicher Motors, and Hindalco rallied up to 4%, capping off a broad-based session that reflected resilient investor sentiment.

Broader indices managed to absorb last week’s profit booking, enabling a rebound. However, the recovery lacks conviction, with markets struggling to sustain upward momentum. Uncertainty around global cues—particularly the ongoing Trump tariff rhetoric—continues to inject volatility, keeping investors guessing about what’s next.

The rebound, partly supported by the RBI’s monetary policy backdrop, helped lift sentiment temporarily, but intermittent declines have continued to test bullish resolve. Market momentum remains subdued, especially with persistent weakness in the Bank Nifty weighing on confidence. Since breaking below its trend channel, the index has faced sustained bearish pressure, suggesting further downside risk as we head into the final trading session of the week.

As the Q1 earnings season gains pace, investor focus will remain on corporate results. In a market increasingly swayed by unpredictable, ad hoc triggers, volatility is likely to persist in the near term.

Sentiment continues to swing, driven by a fast-changing landscape. This makes risk management more important than ever. That said, there is still visible value discovery in mid- and small-cap stocks, indicating pockets of bullishness. Meanwhile, the Trump tariff saga has kept global markets on edge. In the absence of clarity, the Nifty is likely to oscillate in a range between 24,500 and 25,000 in the coming days.

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