Small-Caps Rally After Weeks of Weakness

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.

Also Read: Trump-Putin Summit Ends Without Agreement, Only Symbolism

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.

Click here to explore: BSESensex
Nifty50