5 Key Reasons Bulls Returned to the Stock Market, Filling Investors' Pockets
- byPranay Jain
- 11 Aug, 2025
After six consecutive weeks of decline ending August 8, the stock market saw a strong comeback on Monday, with the Sensex rising about 746 points to close at 80,604 and the Nifty gaining 222 points to finish at 24,585. This bullish rally was driven by five main factors, benefiting investors substantially.
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Valuation Decline Sparks Value Buying:
The prolonged market dip lowered valuations considerably after US-imposed tariffs created uncertainty. This attracted value buyers who saw the dip as an opportunity. Experts see this technical rebound as a likely start of recovery pending trade talks updates. -
Positive Global Market Cues:
Asian markets surged due to strong corporate earnings, especially in tech. The US stock market also advanced recently. Optimism over easing geopolitical tensions and upcoming international summits helped lift market sentiment worldwide. -
Strong Quarterly Earnings Lift Major Stocks:
Shares of State Bank of India and Grasim Industries jumped following impressive Q1 financial results. SBI reported a 12.5% YoY profit growth, leading gains in public sector banks. This confidence spilled over into auto, realty, and other sectors. -
Falling Crude Oil Prices Provide Relief:
Oil prices continued to fall amid hopes for diplomatic progress on the Ukraine conflict, reducing inflationary pressures. Brent crude settled around $66 per barrel, supporting market buoyancy by lowering input costs for many sectors. -
Robust Mutual Fund Inflows:
Data from the Association of Mutual Funds in India showed an 81% jump in equity mutual fund investments in July, marking 53 consecutive months of net inflows. Retail investors remain optimistic despite recent volatility, underpinning steady demand for equities.
Among top performers, Tata Motors led with a 3.24% gain, followed by Grasim, SBI, Trent, and UltraTech Cement with 2-3% rises. Most sectoral indices ended positive, highlighting broad-based strength.
This surge in the market added over Rs 3.39 lakh crore to the BSE's market capitalization, significantly benefiting investors after recent losses.
In summary, a combination of attractive valuations, supportive global trends, strong company performances, easing oil prices, and continued retail participation reignited bullishness, filling investors' pockets and signaling potential further gains ahead.






