Indian equities staged a strong recovery in Monday’s trade, August 4, following a sharp sell-off in the previous session. The rally was led by metals, financials, and auto stocks, while tech stocks also participated in the rebound after facing downward pressure last week amid weak earnings, escalating global trade tensions and weak U.S. economic data.
The Nifty 50 finished the session with a gain of 0.64% at 24,722, while the Sensex closed at 81,018, up 0.55% compared to the previous session. The rally brought relief to the bulls as both indices had ended the last five weeks lower, marking the longest weekly losing streak in two years.
Broader markets also closed higher, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining 1.4% and 1.27%, respectively.
The US dollar index slipped below 99 on Monday, extending last session’s losses as a soft July jobs report fueled expectations of Federal Reserve rate cuts, boosting sentiment in domestic tech stocks.
The falling dollar also triggered a strong rally in metal counters, as a weaker currency generally makes commodities cheaper for buyers holding other currencies, thereby driving up demand.
U.S. President Donald Trump last week unveiled new tariffs rates — ranging from 10% to 41% — on imports from dozens of countries, set to take effect on August 7, reigniting global trade tensions.
