Ahead of Market: 10 things that will decide stock market action on Thursday
Indian equities rallied sharply as Sensex gained 889 points and Nifty topped 24,250, adding over Rs 4 lakh crore in market value. Strong IIP data, IT and metal buying, bullish technical indicators and improving FII sentiment outweighed geopolitica...
By Debaroti Adhikary, ETMarkets.com | Updated:
The Indian stock market sharply surged on Wednesday, with benchmark indices Sensex and Nifty rising more than 1% each, despite a sharp increase in oil prices as US-Iran tensions escalated.
Sensex soared nearly 889 points to close at 77,655 while Nifty gained around 265 points to end the session above 24,250. The sharp gains added over Rs 4 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to Rs 483 lakh crore.
Here's how analysts read the market pulse
Given India's diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades, said Vinod Nair, Head of Research at Geojit Investments. Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs, he added.
Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries, the analyst said. “Attention now shifts to the U.S. Fed's policy decision due later tonight, with the widely expected pause in rates unlikely to materially impact Indian markets, as it is mostly already priced in,” he further said.
US stocks
Wall Street's main indexes dropped on Wednesday as investors awaited the Federal Reserve's monetary policy verdict against the backdrop of an 8% jump in oil prices, while chip stocks remained under pressure ahead of Big Tech earnings.
The benchmark S&P 500 hit its lowest level in a month, while the tech-heavy Nasdaq was at a three-month low, dropping over 9% from its June record high.
Chip stocks such as industry leader Nvidia fell 2.3% and Micron lost 4.6%, sending the Philadelphia Semiconductor index down 3.6% to a more than two-month low.
Industrials slid 2.5% and led declines on the S&P 500, with AI infrastructure company Vertiv down 13.2% after missing quarterly revenue expectations.
Oil prices climbed 7% on Wednesday as airstrikes resumed in the Middle East, adding to worries about dwindling supply as U.S. government data showed crude inventories fell to a multi-year low.
Brent futures were up $6.16, or 7.33%, at $90.25 a barrel by 11:36 a.m. ET (1536 GMT). U.S. West Texas Intermediate crude gained $5.40, or 6.81%, to $84.65 a barrel.
European stocks
Global markets have been volatile this month as investors question the sustainability of the AI spending boom amid signs that major U.S. companies are deepening a web of AI-linked investments and continuing to funnel billions into the technology at the expense of free cash flow. The pan-European STOXX 600 index fell 0.21%, while Europe's broad FTSEurofirst 300 index fell 0.28%.
Tech view
Nifty 50 has risen after a period of consolidation on the daily timeframe, Rupak De, Senior Technical Analyst at LKP Securities, noted. He highlighted that the index’s RSI has entered a bullish crossover. Besides, the index has been sustaining above the critical 50 EMA.
“On the hourly chart, the index has reclaimed the 200 DMA as well, confirming near-term strength. In the near term, the index is likely to remain strong, with the potential to rise towards 24,450–24,500. On the lower end, support is placed at 24,100. Sentiment may weaken if the index falls below this level, which could lead to a decline towards 23,950,” he said.
Most active stocks in terms of turnover
Infosys (Rs 3,964 crore), Kalyan Jewellers (Rs 2,752 crore), Paradeep Phosphates (Rs 2,680 crore), Kaynes Technology (Rs 2,145 crore), Swiggy (Rs 2,096 crore), KPIT Tech (Rs 1,812 crore) and TCS (Rs 1,757 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
Vodafone Idea (Traded shares: 27.51 crore), Suzlon Energy (Traded shares: 22.17 crore), Paradeep Phosphates (Traded shares: 17.32 crore), Swiggy (Traded shares: 7.33 crore), Sagility India (Traded shares: 5.63 crore), Eternal (Traded shares: 4.97 crore) and Firstsource (Traded shares: 4.94 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Phillips Carbon, Kaynes Technology, Paradeep Phosphates, Firstsource, Swiggy, Honeywell and Crompton Greaves 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 Honeywell, Craftsman Automation, Divis Labs, Lloyds Metals, Kalyan Jewellers India, Welspun Corp and Manappuram Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were J&K Bank, Phoenix Mills, Pine Labs, Sumitomo Chemical, City Union Bank, Schneider and Emmvee Photovoltaic.
52-week low
Among the ones which hit their 52-week lows on NSE included IndiaMART.
Sentiment meter favours bulls
Out of the 3,441 stocks that traded on the NSE on July 29, Wednesday, 2,129 stocks witnessed advances, 1,181 saw declines while 131 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Sensex soared nearly 889 points to close at 77,655 while Nifty gained around 265 points to end the session above 24,250. The sharp gains added over Rs 4 lakh crore to the total market capitalisation of all companies listed on BSE, pulling it up to Rs 483 lakh crore.
Here's how analysts read the market pulse
Given India's diversified market structure, the case for FII inflows is strengthening with the unwinding of crowded AI trades, said Vinod Nair, Head of Research at Geojit Investments. Meanwhile, despite the intraday uptick in crude prices driven by renewed tensions in West Asia, the broader decline in oil prices over the week has eased inflation concerns and reinforced optimism around the growth outlook and reduction in operational costs, he added.
Domestically, while stronger-than-expected IIP data provided the catalyst for a positive start, the renewed risk appetite helped sustain the gains throughout the session, with IT and metal stocks emerging as key beneficiaries, the analyst said. “Attention now shifts to the U.S. Fed's policy decision due later tonight, with the widely expected pause in rates unlikely to materially impact Indian markets, as it is mostly already priced in,” he further said.
US stocks
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Wall Street's main indexes dropped on Wednesday as investors awaited the Federal Reserve's monetary policy verdict against the backdrop of an 8% jump in oil prices, while chip stocks remained under pressure ahead of Big Tech earnings.
The benchmark S&P 500 hit its lowest level in a month, while the tech-heavy Nasdaq was at a three-month low, dropping over 9% from its June record high.
Chip stocks such as industry leader Nvidia fell 2.3% and Micron lost 4.6%, sending the Philadelphia Semiconductor index down 3.6% to a more than two-month low.
Industrials slid 2.5% and led declines on the S&P 500, with AI infrastructure company Vertiv down 13.2% after missing quarterly revenue expectations.
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Oil prices climbed 7% on Wednesday as airstrikes resumed in the Middle East, adding to worries about dwindling supply as U.S. government data showed crude inventories fell to a multi-year low.
Brent futures were up $6.16, or 7.33%, at $90.25 a barrel by 11:36 a.m. ET (1536 GMT). U.S. West Texas Intermediate crude gained $5.40, or 6.81%, to $84.65 a barrel.
ADVERTISEMENT
European stocks
Global markets have been volatile this month as investors question the sustainability of the AI spending boom amid signs that major U.S. companies are deepening a web of AI-linked investments and continuing to funnel billions into the technology at the expense of free cash flow. The pan-European STOXX 600 index fell 0.21%, while Europe's broad FTSEurofirst 300 index fell 0.28%.
Tech view
Nifty 50 has risen after a period of consolidation on the daily timeframe, Rupak De, Senior Technical Analyst at LKP Securities, noted. He highlighted that the index’s RSI has entered a bullish crossover. Besides, the index has been sustaining above the critical 50 EMA.
“On the hourly chart, the index has reclaimed the 200 DMA as well, confirming near-term strength. In the near term, the index is likely to remain strong, with the potential to rise towards 24,450–24,500. On the lower end, support is placed at 24,100. Sentiment may weaken if the index falls below this level, which could lead to a decline towards 23,950,” he said.
Most active stocks in terms of turnover
Infosys (Rs 3,964 crore), Kalyan Jewellers (Rs 2,752 crore), Paradeep Phosphates (Rs 2,680 crore), Kaynes Technology (Rs 2,145 crore), Swiggy (Rs 2,096 crore), KPIT Tech (Rs 1,812 crore) and TCS (Rs 1,757 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
Vodafone Idea (Traded shares: 27.51 crore), Suzlon Energy (Traded shares: 22.17 crore), Paradeep Phosphates (Traded shares: 17.32 crore), Swiggy (Traded shares: 7.33 crore), Sagility India (Traded shares: 5.63 crore), Eternal (Traded shares: 4.97 crore) and Firstsource (Traded shares: 4.94 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Phillips Carbon, Kaynes Technology, Paradeep Phosphates, Firstsource, Swiggy, Honeywell and Crompton Greaves 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 Honeywell, Craftsman Automation, Divis Labs, Lloyds Metals, Kalyan Jewellers India, Welspun Corp and Manappuram Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were J&K Bank, Phoenix Mills, Pine Labs, Sumitomo Chemical, City Union Bank, Schneider and Emmvee Photovoltaic.
52-week low
Among the ones which hit their 52-week lows on NSE included IndiaMART.
Sentiment meter favours bulls
Out of the 3,441 stocks that traded on the NSE on July 29, Wednesday, 2,129 stocks witnessed advances, 1,181 saw declines while 131 stocks remained unchanged.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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