Ahead of Market: 10 things that will decide stock market action on Friday

The Indian stock market crashed on Thursday, with Sensex and Nifty falling more than 1.6% each as bond yields surged to 19-year highs, along with other factors that spooked investors.

Sensex crashed around 1,248 points to close at 73,581, while Nifty 50 dropped 384 points to end the session at 23,063. Broader markets crashed further, with Nifty Midcap 100 plunging more than 2% and Nifty Smallcap 100 index dropping 1.5%.

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Here's how analysts read the market pulse

Indian equities witnessed a sharp risk-off session as selling intensified across sectors, particularly financials. The correction reflects more than routine profit-booking, said Vikram Kasat, Chief Business Officer of Advisory and Dealing at PL Capital. He highlighted the rise in the US 10-year Treasury yield to around 5.11%, crude oil remaining above $100 a barrel and persistent geopolitical uncertainty are collectively raising concerns around inflation, borrowing costs and the pace of global monetary easing.

“This is prompting investors to reduce risk, particularly in rate-sensitive segments,” he added. Going forward, the analyst said volatility could remain elevated until there is greater clarity on crude prices and global yields. A moderation in these pressures would be important for sentiment to stabilise.

US stocks

Wall Street's main indexes dropped on Thursday as uncertainty over prospects for a resolution to the Middle East conflict lifted oil prices and Treasury yields, keeping risk appetite in check ahead of a keenly watched US-China summit.

US and Iran leaders exchanged barbs at the UN General Assembly this week, which sent Brent crude prices back to above $100 a barrel. A potential ban of US diesel exports added to investor caution.

Technology stocks led declines on the S&P 500, with chipmakers such as Nvidia, Broadcom and Micron slipping over 1% each.

A rise in Treasury yields, with that on the 30-year Treasury bond reaching its highest since 2004, pressured riskier assets as the market priced in the likelihood of a long war and higher borrowing costs.

European markets

MSCI's main world share index, the pan European STOXX 600 and Wall Street futures all moved lower amid the unsettled mood.

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Most active stocks in terms of turnover

Policy Bazaar (Rs 3,510 crore), HDFC Bank (Rs 2,159 crore), BSE (Rs 1,835 crore), RIL (Rs 1,712 crore), Ola Electric (Rs 1,605 crore), Max Financial (Rs 1,592 crore), and MCX India (Rs 1,418 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with the highest trading turnovers in the day.

Most active stocks in volume terms

Ola Electric (Traded shares: 37.61 crore), Vodafone Idea (Traded shares: 36.39 crore), Suzlon Energy (Traded shares: 13.12 crore), Yes Bank (Traded shares: 10.22 crore), IFCI (Traded shares: 7.08 crore), IDFC First Bank (Traded shares: 4.06 crore) and L&T Finance (Traded shares: 3.7 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Allied Blenders, ICICI Lombard, Sun TV, Caplin Point, Carborundum Uni, United Breweries and Go Digit General Insurance Company were among the stocks that witnessed strong buying interest from market participants.

52-week high

Among the ones which hit their 52-week highs on NSE included Allied Blenders, Caplin Point, Carborundum Uni, Divi’s Labs, Aurobindo Pharma, Laurus Labs and Shyam Metalics.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Policy Bazaar, Max Financial, L&T Finance, HDFC Life, Bajaj Finance, Info Edge and New India Assurance.

.52-week low

Among the ones which hit their 52-week lows on NSE included Policy Bazaar, Max Financial, ICICI Prudential Life Insurance, IRCON International, Latent View Analytics, India Cements and RIL.

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Sentiment meter favours bulls

Out of the 3,629 stocks that traded on the NSE on September 24, Thursday, 943 stocks witnessed advances, 2,587 stocks saw declines while 99 stocks remained unchanged.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere.