Stock Market Shines with Secular Rally with Q1FY26 Focus

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Strong Q1 results drive broad-based market rally; midcaps and smallcaps shine alongside sector leaders

By S JHA

MUMBAI, August 13, 2025 — Indian equity benchmarks ended sharply higher on Wednesday, powered by broad-based buying across sectors, upbeat global cues, and a record-low domestic inflation print.

The Sensex climbed nearly 300 points (0.35–0.38%) to close around 80,520, while the Nifty 50 advanced 0.5–0.66% to settle above 24,600. “Midcap and smallcap indices outperformed, rising 0.5–0.8%, underscoring broad market strength,” said StockEdge in a post in its Telegram channel.

All major sectors finished in the green, with metals leading the charge — up nearly 2% as Hindalco, NMDC, and other metal counters surged between 4–18% on strong Q1 results and robust commodity prices. “Auto and pharma stocks rallied around 1–1.4%, with Nifty Auto posting its highest close in three months. Healthcare also jumped nearly 2%, fuelled by Apollo Hospitals’ 5–6% surge after it beat Q1 profit estimates,” added StockEdge.

Stock Highlights

FSN E-Commerce Ventures (Nykaa): Up 3–4% on strong quarterly earnings.
One97 Communications (Paytm): Gained 3.6–5% after RBI granted conditional approval for its payments subsidiary.
TVS Motor: Hit a 52-week high, rising over 2%.

Globally, Asian markets traded more than 1% higher, while European bourses gained over 0.5%, buoyed by softer-than-expected US inflation data that lifted hopes of a US Fed rate cut in September. “Domestically, sentiment was bolstered by India’s retail inflation in July dropping to an eight-year low of 1.55%, adding to the optimism,” said Angel One in its note to clients.

Market analysts expect the current momentum to persist in the near term, especially in cyclicals and growth sectors, with the auto rally extending into a third consecutive session.

Pharmaceutical stocks were in demand in the market on Wednesday amid a sectoral move. Shares of Laurus Laboratories gained over four percent. The API giant is trading in a strong momentum. Its peer Caplin Point Laboratory also extended gains. Shares of Caplin Point Laboratory have been in an up move ever since the unveiling of the quarterly results recently.

A key takeaway of the market action was investors chasing stocks of companies which delivered a good set of number in the quarterly results. Shares of HBL Power System further extended gains. Shares of Tilaknagar Industries also showed strength during the day.

Shares of Premier Explosives vaulted 20% after announcing Q1FY26 results. The defence company reported a robust order book along with surge in revenue.

After days of correction, defence stocks also moved sharply on Wednesday. The likes of Garden Reach Shipyard, Mazgaon Dock Shipyard, Bharat Dynamics, BEL, and many others surged on Wednesday.

(Disclaimer: This article makes no recommendation for any kind of trade in the stock market)

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