The Indian stock market staged a strong comeback in the holiday-shortened week ended August 14, 2025, breaking its six-week losing streak.
The rally was led by small-cap stocks, where nearly 25 counters surged as much as 54%, sparking fresh optimism in the broader markets.
Indices Snap Losing Streaks
The week saw BSE mid-cap and small-cap indices snap a three-week losing streak, while large-cap indices also ended their six-week decline.
BSE Large-cap index: +1%
BSE Mid-cap index: +1%
BSE Small-cap index: +0.4%
This positive momentum was supported by a mix of favorable data points from both the U.S. and India.
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Sensex and Nifty End Higher
Benchmark indices also closed the week on a strong note.
BSE Sensex added 739.87 points (0.92%) to settle at 80,597.66
Nifty50 gained 268 points (1.10%) to close at 24,631.30
The rebound came as a relief for investors after weeks of selling pressure.
What Drove the Market Rally?
Market sentiment improved on the back of:
India’s CPI data showing stability
In-line corporate earnings
Appreciation of the rupee
Falling crude oil prices
These factors collectively boosted investor confidence and provided the much-needed lift for equities across segments.
Key Takeaway
Indian markets finally broke their multi-week losing streak, with small-cap stocks leading the charge. Benchmark indices Sensex and Nifty also ended higher, supported by strong data and easing global pressures.
