Market Momentum Builds Steam
India's Inflation Victory Sparks Healthcare & Metal Rally
India's market witnessed a remarkable comeback today as retail inflation plummeted to a stunning 1.55% in July 2025—the lowest reading since June 2017. This eight-year low sent shockwaves through Dalal Street, with the Sensex closing 304.32 points higher at 80,539.91 and Nifty gaining 131.95 points to settle at 24,619.35. The dramatic inflation drop, marking the ninth consecutive month of decline from 2.1% in June, has markets betting heavily on potential RBI rate cuts ahead.
Healthcare and metal stocks emerged as the day's heroes, with pharmaceutical stocks leading a 2.13% sector surge. The lower inflation data boosted hopes for a revival in discretionary spending, particularly benefiting auto (up 1.12%) and metal sectors (up 1.26%). Market veterans are now eyeing the upcoming Trump-Putin summit on August 15 as the next catalyst, with global sentiment improving on extended China tariff deadlines and easing oil prices.
Key Companies: Apollo Hospitals surged 8.2% to hit an all-time high following stellar Q1 results showing 42% profit growth, while BEL (Bharat Electronics) gained 2.24% as defense stocks rallied on strong earnings momentum.
Apollo Hospitals' Record High Ride on Healthcare Boom
Apollo Hospitals delivered a masterclass in healthcare excellence, with shares rocketing 8.2% to an all-time high of ₹7,840 after reporting blockbuster Q1FY26 results. The healthcare giant posted a phenomenal 42% year-on-year surge in net profit to ₹433 crore, supported by broad-based growth across its hospital, diagnostics, and digital health businesses. Revenue climbed 15% to ₹5,842 crore, while EBITDA jumped 26% to ₹852 crore with impressive margin expansion.
The company's ambitious expansion blueprint caught investor attention, announcing plans to add over 4,300 beds across five years with a massive ₹7,600 crore capital outlay. Apollo's flagship hospital segment delivered 11% revenue growth driven by a 3% rise in inpatient volumes and 11% increase in average revenue per patient, though occupancy dipped by 300 basis points to 65%. The digital platform Apollo 24/7 achieved quarterly GMV of over ₹682 crore, showcasing the continuing strong demand for tele-consultations.
Key Companies: Apollo Hospitals led the charge with its record-breaking performance, while Dr. Reddy's and Cipla also gained nearly 3% each as the pharmaceutical sector basked in the inflation-driven optimism.
USA's Fed Rate Cut Frenzy Fuels Record Highs
Wall Street's Rate Cut Rally Reaches New Heights
American markets continued their spectacular ascent for the second consecutive day, with the S&P 500 and Nasdaq hitting fresh all-time highs as Fed rate cut bets surged to near-certainty levels. The Dow Jones Industrial Average gained a robust 483.62 points (+1.1%) to 45,052.84, while the S&P 500 climbed 57.48 points (+1.1%) to 5,696.21 and the Nasdaq Composite soared 210.14 points (+1.4%) to 15,726.93. July's CPI data showing headline inflation easing to 2.7% year-over-year has markets pricing in a 94% probability of a September rate cut, up dramatically from 81% just a day earlier.
The rate cut euphoria reached fever pitch when Treasury Secretary Scott Bessent publicly urged the Fed to slash rates by 50 basis points in September rather than the expected 25 basis points, creating unprecedented political pressure on the central bank. Technology megacaps led the charge with Apple surging 2.3% to $238.71, Nvidia climbing 3.8% to $149.22, and Tesla jumping 4.1% to $322.85 after abandoning its Dojo supercomputer project in favor of partnerships with Samsung and Nvidia.
Key Companies: NXP Semiconductors emerged as the day's biggest winner with a 7.3% surge, while the VIX fear gauge plummeted 9.4% to 14.73 as market volatility hit year-to-date lows
Tesla shares accelerated into higher gear following CEO Elon Musk's weekend revelation about abandoning the ambitious Dojo supercomputer project. The electric vehicle pioneer's stock rallied as Musk confirmed the "evolutionary dead end" decision, explaining the strategic shift toward AI6 chips and external partnerships with Nvidia and Samsung for chip manufacturing. The Dojo supercomputer, once valued by Morgan Stanley at potentially $500 billion in added company value, was designed to train Tesla's autonomous driving systems and Optimus humanoid robot.
The strategic pivot reflects Tesla's broader transformation as the company signed a $16.5 billion agreement with Samsung in late July for AI chip production at Samsung's new Texas facility. Musk emphasized that "it doesn't make sense for Tesla to split resources and scale two quite different AI chip designs," with the company now focusing entirely on AI5 and AI6 inference chips for real-time decision-making. The Dojo team has been disbanded with about 20 workers departing to form startup DensityAI, while remaining staff are being reassigned to other data center projects.
Key Companies: Tesla benefited from the strategic clarity, while Samsung and Nvidia gained as key partners in Tesla's new AI chip strategy, showcasing how corporate restructuring can create win-win scenarios for technology partnerships
Market Movers & Shakers: The Earnings Edition
The Correction Chronicles: When High Flyers Hit Turbulence
Not all stories were sunshine and gains today, as several high-profile companies faced reality checks despite strong business fundamentals. CoreWeave tumbled 9.2% in after-hours trading despite beating revenue estimates with a massive 207% year-over-year surge to $1.21 billion. The AI cloud provider's disappointment came from deteriorating operating income guidance for Q3, with projections of $160-190 million falling short of Wall Street's $192 million expectations. More concerning, the company's interest expenses of $350-390 million are projected to exceed operating income, raising sustainability questions about the debt-heavy business model
Cava Group experienced its largest single-day decline in history, plummeting 23% in after-hours trading following a significant slowdown in same-store sales growth to just 2.1% versus expectations of 6.1%. The Mediterranean fast-casual chain blamed the shortfall on a "fluid macroeconomic environment" creating consumer confusion, forcing management to cut full-year same-store sales guidance to 4-6% from the previous 6-8% target. Despite beating earnings expectations with $0.16 per share, the revenue miss and first guidance cut since the 2023 IPO sent shockwaves through growth investors.
Key Companies: CoreWeave and Cava dominated the losers' list, while Circle also fell 6% after announcing a 10 million share secondary offering just two months post-IPO, raising dilution concerns among shareholders
Global Crosscurrents: Geopolitics Meets Markets
The market backdrop was further complicated by significant geopolitical developments, with President Trump and Russian President Putin scheduled to meet in Alaska on August 15 for their first face-to-face discussion since Trump's re-election. The summit, focused on ending the Russia-Ukraine war, has markets cautiously optimistic about potential diplomatic breakthroughs while maintaining vigilance over trade policy implications. Meanwhile, AI startup Perplexity made headlines with a bold $34.5 billion all-cash bid for Google's Chrome browser, a move widely viewed as strategic positioning ahead of potential antitrust remedies rather than a serious acquisition attempt
The Indian rupee strengthened 21 paise to 87.49 per dollar on Wednesday, marking its biggest one-day appreciation since July 3, driven by dollar weakness amid Fed rate cut expectations. This currency strength, combined with falling crude oil prices and domestic inflation hitting eight-year lows, creates a favorable backdrop for Indian equities heading into the crucial Trump-Putin diplomatic talks
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