In the past one month, the Indian stock market witnessed a roller coaster ride, and the benchmark index Nifty 50 posted a fall of 2.51% , while BSE Sensex slipped by 2.38% in the past one month. July 2025 saw a series of events including inflation numbers by US and India, signing of India-UK FTA, US-EU trade deal, release of Q1FY26 earnings and others.
The market participants are set to witness major trends and events to come in August 2025, which impact market momentum significantly. Let’s take a look at the key trends and factors likely to influence Indian stock market movements in August 2025.
Auto companies are expected to release their monthly sales number for July 2025 on Aug 1. Investors will closely watch the upcoming auto sales data to assess whether the June sales trends persist, especially amid changing consumer demand and sector-specific pressures.
In June 2025, several leading Indian automobile companies reported mixed sales performances. Maruti Suzuki India Ltd registered total sales of 167,993 units, including 121,339 units in the domestic market, 8,812 units to other OEMs, and 37,842 units exported. Tata Motors, on the other hand, reported total sales of 2,10,415 units in Q1 FY26 across domestic and international markets, reflecting a decline from 2,29,891 units sold in Q1 FY25.
The Reserve Bank of India’s Monetary Policy Committee (MPC) is scheduled to meet from August 4 to August 6, 2025. During this meeting, the RBI will decide on the repo rate, which is the interest rate at which the central bank lends money to commercial banks in times of fund shortages.
Inflation rate is among the key macroeconomic indicators, which helps investors to take several important decisions with respect to their investments. The inflation rate data for the India and US are set to release on August 12, 2025.
India’s consumer price inflation eased for the eighth consecutive month, dropping to 2.1% in June 2025—the lowest level since January 2019. This was a significant decline from 2.82% in May and below market expectations of 2.5%. The sharp reduction was primarily driven by a 1.06% fall in food prices, marking the first annual decrease in this category since early 2019.
Read More: Upcoming Dividends in August 2025: Eicher Motors, MCX, and PTC India, Among Others
August 2025 promises to be a pivotal month for the Indian stock market, with key developments across sectors and macroeconomic indicators likely to shape investor sentiment. The upcoming auto sales data will provide fresh insights into consumer demand trends, while the RBI’s Monetary Policy Committee meeting will be closely watched for interest rate decisions that could influence liquidity and borrowing costs.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 31, 2025, 2:47 PM IST
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