Ahead of Market: 10 things that will decide stock market action on Thursday
Indian equities ended marginally higher despite sharp swings driven by closing auction session confusion. RBI maintained rates, raised FY27 GDP outlook and lowered inflation forecast. Realty, auto and metal stocks outperformed, while analysts expe...
By Debaroti Adhikary, ETMarkets.com | Updated:
iStock
The Indian stock market closed in the green on Wednesday with Sensex and Nifty ending the session with slight gains after recording sharp upswings and downswings amid confusion surrounding the newly introduced closing auction session (CAS).
Sensex rose 152 points to close at 78,581 while Nifty 50 gained around 10 points to end the session at 24,625 on Wednesday. This came while India VIX, which measures volatility in the market, dropped 1.5% to 12.
Here's how analysts read the market pulse
The Reserve Bank of India (RBI) MPC has maintained the status quo while marginally upgrading FY27 GDP growth projection, citing a resilient domestic economy. Additionally, annual inflation estimates were lowered, indicating the governor’s open minded approach, which suggested an optimistic view though further policy action would depend on data, said Vinod Nair, Head of Research at Geojit Investments.
Consequently, a rise in crude prices following renewed concerns over escalating tensions in West Asia, led Indian markets, which had opened strongly, to gradually move lower during the course of the session, the analyst noted.
Defying the broader market trend, realty and auto stocks outperformed on strong demand expectations ahead of festive season and supportive financing conditions, while metal stocks gained on the back of an improved GDP growth outlook and robust domestic demand, Nair further said.
US stocks
The S&P 500 and the Dow traded at all-time highs on Wednesday, as hopes of a Middle East peace breakthrough offset the slide in shares of SpaceX and AMD after the upbeat forecasts issued by the companies failed to impress investors.
Elon Musk-led SpaceX's revenue nearly doubled and operating losses narrowed in its first earnings report since going public, but the rocket company's shares slid 12.5% in early trading after executives flagged the spending spree underpinning its lofty ambitions was far from over.
Wednesday's moves built on Wall Street's rally spanning the past few sessions that took the benchmark S&P 500 and the blue-chip Dow to record highs as confidence in AI-related stocks flourished.
European markets
European shares closed at a fresh all-time high on Wednesday as investors sifted through the latest batch of corporate earnings while watching the fast-moving developments in the Middle East conflict.
The pan-European STOXX 600 index closed 0.04% higherat 657.14 points, after closing at an all-time peak in the previous session.
European shares have touched record highs in three of the past four straight sessions as upbeat corporate earnings outweighed concerns over the Middle East conflict.
Most major regional benchmarks were mostly muted to lower, while Spain's IBEX' bucked the trend, up 0.2%.
Markets were weighing mixed signals from the Middle East after Yemen's Iran-aligned Houthi group launched a missile attack on a Saudi oil tanker in the Red Sea.
Tech view
The Nifty remained range-bound throughout the session as traders largely stayed on the sidelines following the interest rate announcement and the release of economic projections, said Rupak De, Senior Technical Analyst at LKP Securities. On the downside, 24,500 acted as a key support level, while the index failed to sustain above 24,700 during the day, he added.
“In the short term, we expect the Nifty to remain largely range-bound. Immediate support is placed at 24,400, while 24,800 remains the crucial resistance level. A decisive move above 24,800 could trigger a meaningful rally in the index,” the analyst said.
Most active stocks in terms of turnover
HDFC Bank (Rs 4,421 crore), RIL (Rs 3,179 crore), Bharti Airtel (Rs 2,821 crore), BSE (Rs 2,438 crore), LIC (Rs 1,828 crore), ICICI Bank (Rs 1,691 crore) and Kalyan Jewellers (Rs 1,525 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 Mobility (Traded shares: 26.82 crore), Vodafone Idea (Traded shares: 20.44 crore), JP Power (Traded shares: 7.82 crore), Yes Bank (Traded shares: 6.99 crore), HDFC Bank (Traded shares: 6 crore), LIC (Traded shares: 4.66 crore), and Suzlon Energy (Traded shares: 3.96 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Hindustan Copper, Ola Electric Mobility, New India Assurance, Engineers India, Go Digit General Insurance, Hindustan Zinc and RR Kabel 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 R R Kabel, Bosch, PNB Housing, Gabriel India, Neuland Labs, Sona BLW Precision and Shriram Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were C.E. Info Systems, Zee Entertainment Enterprises, Aegis Vopak Terminals, Bharti Hexacom, Kalyan Jewellers India, Sonata Software and Zydus Wellness.
Sentiment meter favours bulls
Out of the 3,472 stocks that traded on the NSE on August 5, Wednesday, 1,974 stocks witnessed advances, 1,394 saw declines while 104 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 rose 152 points to close at 78,581 while Nifty 50 gained around 10 points to end the session at 24,625 on Wednesday. This came while India VIX, which measures volatility in the market, dropped 1.5% to 12.
Here's how analysts read the market pulse
The Reserve Bank of India (RBI) MPC has maintained the status quo while marginally upgrading FY27 GDP growth projection, citing a resilient domestic economy. Additionally, annual inflation estimates were lowered, indicating the governor’s open minded approach, which suggested an optimistic view though further policy action would depend on data, said Vinod Nair, Head of Research at Geojit Investments.
Consequently, a rise in crude prices following renewed concerns over escalating tensions in West Asia, led Indian markets, which had opened strongly, to gradually move lower during the course of the session, the analyst noted.
Defying the broader market trend, realty and auto stocks outperformed on strong demand expectations ahead of festive season and supportive financing conditions, while metal stocks gained on the back of an improved GDP growth outlook and robust domestic demand, Nair further said.
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US stocks
The S&P 500 and the Dow traded at all-time highs on Wednesday, as hopes of a Middle East peace breakthrough offset the slide in shares of SpaceX and AMD after the upbeat forecasts issued by the companies failed to impress investors.
Elon Musk-led SpaceX's revenue nearly doubled and operating losses narrowed in its first earnings report since going public, but the rocket company's shares slid 12.5% in early trading after executives flagged the spending spree underpinning its lofty ambitions was far from over.
Wednesday's moves built on Wall Street's rally spanning the past few sessions that took the benchmark S&P 500 and the blue-chip Dow to record highs as confidence in AI-related stocks flourished.
ADVERTISEMENT
European markets
European shares closed at a fresh all-time high on Wednesday as investors sifted through the latest batch of corporate earnings while watching the fast-moving developments in the Middle East conflict.
ADVERTISEMENT
The pan-European STOXX 600 index closed 0.04% higherat 657.14 points, after closing at an all-time peak in the previous session.
European shares have touched record highs in three of the past four straight sessions as upbeat corporate earnings outweighed concerns over the Middle East conflict.
Most major regional benchmarks were mostly muted to lower, while Spain's IBEX' bucked the trend, up 0.2%.
Markets were weighing mixed signals from the Middle East after Yemen's Iran-aligned Houthi group launched a missile attack on a Saudi oil tanker in the Red Sea.
Tech view
The Nifty remained range-bound throughout the session as traders largely stayed on the sidelines following the interest rate announcement and the release of economic projections, said Rupak De, Senior Technical Analyst at LKP Securities. On the downside, 24,500 acted as a key support level, while the index failed to sustain above 24,700 during the day, he added.
“In the short term, we expect the Nifty to remain largely range-bound. Immediate support is placed at 24,400, while 24,800 remains the crucial resistance level. A decisive move above 24,800 could trigger a meaningful rally in the index,” the analyst said.
Most active stocks in terms of turnover
HDFC Bank (Rs 4,421 crore), RIL (Rs 3,179 crore), Bharti Airtel (Rs 2,821 crore), BSE (Rs 2,438 crore), LIC (Rs 1,828 crore), ICICI Bank (Rs 1,691 crore) and Kalyan Jewellers (Rs 1,525 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 Mobility (Traded shares: 26.82 crore), Vodafone Idea (Traded shares: 20.44 crore), JP Power (Traded shares: 7.82 crore), Yes Bank (Traded shares: 6.99 crore), HDFC Bank (Traded shares: 6 crore), LIC (Traded shares: 4.66 crore), and Suzlon Energy (Traded shares: 3.96 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Hindustan Copper, Ola Electric Mobility, New India Assurance, Engineers India, Go Digit General Insurance, Hindustan Zinc and RR Kabel 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 R R Kabel, Bosch, PNB Housing, Gabriel India, Neuland Labs, Sona BLW Precision and Shriram Finance.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were C.E. Info Systems, Zee Entertainment Enterprises, Aegis Vopak Terminals, Bharti Hexacom, Kalyan Jewellers India, Sonata Software and Zydus Wellness.
Sentiment meter favours bulls
Out of the 3,472 stocks that traded on the NSE on August 5, Wednesday, 1,974 stocks witnessed advances, 1,394 saw declines while 104 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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