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

The Indian stock market remained mostly muted on Tuesday, with Sensex and Nifty erasing early gains to close in the red after a sharp rally in the earlier session.

Sensex lost 70 points to close at 76,766, while Nifty 50 fell nearly 11 points to end the session at 23,985. Broader markets remained mixed, with Nifty Smallcap 100 closing in the red and Nifty Midcap 100 index ending in the green.

Here's how analysts read the market pulse


The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures, but investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ, said Vinod Nair, Head of Research, Geojit Investments.

Persistent volatility in energy markets and heightened geopolitical risks could keep global bond yields elevated this year, he noted. Nevertheless, expectations that major central banks will hold interest rates steady in their July policy meetings have offered some support to market sentiment.

“India's relative advantage under the revised US tariff framework further supported investor confidence. On the domestic front, improving monsoon conditions and moderately better Q1 FY27 earnings have strengthened the growth outlook. Sectoral trends remained mixed, with IT stocks continuing to outperform, supported by attractive valuations,” the analyst said.

US stocks

The Nasdaq fell on Tuesday, mirroring a cautious mood across global markets toward AI chip stocks on concerns about hefty corporate spending and rising Chinese competition, ahead of earnings from some of the biggest companies on Wall Street.

Global markets have become increasingly volatile this month as investors scrutinize the need for more corporate spending on AI infrastructure such as semiconductors that underpinned strong gains in chip stocks in the previous quarter.

Signs that Wall Street's biggest companies such ⁠as Alphabet and Tesla ‌are running out of cash to fund their ambitions have also made markets nervous, while China showcases cheaper AI models and deepens its presence in the competitive semiconductor industry.

When AI hyperscalers Amazon.com, Meta, Apple and Microsoft report earnings later this week, investors will be keen to see if their investments, worth over several hundred billion dollars, are yielding returns.

Dow component Coca-Cola gained 6.3%, as the beverage company raised its annual revenue and profit forecasts. Gains in Coca-Cola also ‌helped in lifting the S&P 500's consumer staples index, which was up 3.1%.

The Federal Reserve is due to announce ⁠its interest-rate decision on Wednesday. Traders see a 37% chance of a rate hike this week, according to LSEG data, and expect borrowing costs to rise by at least 25 basis points by year-end.

Higher rates could further pressure AI companies that are becoming more dependent on debt financing.

Oil prices offered some relief, falling 2.4% to a one-week low as a fragile U.S.-Iran ceasefire appeared to hold despite reports of drone attacks in Saudi Arabia, Jordan and Iraq. President Donald Trump said the U.S. was having "good talks" with Iran and that a deal to end the conflict was possible.

European markets

European shares rose for a third day on Tuesday, led by consumer-focused stocks after strong results from Unilever, which helped offset declines in heavyweight banks and technology shares.

The pan-European STOXX 600 index gained 0.3% to 646.75 points..

Tech view

Nifty 50 index remained range-bound during the day, with the regular monthly expiry volatility largely absent, Rupak De, Senior Technical Analyst at LKP Securities, said. Nifty closed around the 50 EMA for the second consecutive day, suggesting indecisiveness among traders.

“On the higher end, 24,050 remained a strong resistance, while on the lower end, support was seen around 23,920. A decisive move above 24,050 in the near term might provide the required strength for the index to move towards 24,500 in the short term. On the lower end, support is placed at 23,800,” according to the analyst.

Most active stocks in terms of turnover

Infosys (Rs 3,115 crore), ICICI Bank (Rs 2,789 crore), Coforge (Rs 2,597 crore), HDFC Bank (Rs 2,496 crore), Kalyan Jewellers (Rs 2,144 crore), Eternal (Rs 2,142 crore) and Varun Beverages (Rs 2,101 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: 28.62 crore), Suzlon Energy (Traded shares: 22.48 crore), Yes Bank (Traded shares: 7.17 crore), Eternal (Traded shares: 7.04 crore), IDFC First Bank (Traded shares: 5.14 crore), Sagility India (Traded shares: 5.13 crore) and Varun Beverages (Traded shares: 4.8 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Coforge, Affle (India), Macrotech Developers, Kalyan Jewellers, City Union Bank, Hexaware and Gallantt Metal 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 City Union Bank, Radico Khaitan, TVS Motor, Marico, Laurus Labs, Titan Company and RR Kabel.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Suzlon Energy, Gravita India, Godfrey Philips, Varun Beverages, HUL, Capri Global and Nuvama Wealth Management.

52-week low

Among the ones which hit their 52-week lows on NSE included HUL, Go Digit General Insurance, IRCTC, RVNL, IndiaMART, Tega Industries and KEC International.

Sentiment meter favours bears

Out of the 3,407 stocks that traded on the NSE on July 28, Tuesday, 1,160 stocks witnessed advances, 2,133 saw declines while 114 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)