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

The Indian stock market saw a blistering rally on Thursday, as Sensex and Nifty surged up to 3% as the Democrats' gains in the US midterm elections, marking a setback for Trump, along with easing oil prices and other positive cues, fuelled a fresh bull charge on Dalal Street, extending the market's recovery streak this week.

Sensex jumped around 2,009 points to close at 79,310 while Nifty 50 rallied over 576 points to end the session at 24,537. The sharp gains added more than Rs 8 lakh crore to the total market capitalisation of all companies listed on BSE, pushing it above Rs 500 lakh crore for the first time ever.

Also read | Why did stock market rally today?


Here's how analysts read the market pulse

"The US midterm verdict gave Indian equities fresh momentum, with the rally gathering pace on hopes that a more restrained Washington could pave the way for de-escalation in the Iran conflict and tariff policies. As the threat of geopolitical escalation and energy supply shocks faded, crude prices slumped, and a retreat in U.S. Treasury yields and the dollar took further pressure off India’s inflation outlook and external accounts. Financials and autos were at the forefront, riding a wave of renewed risk appetite as the macro picture brightened. Steady recovery in foreign buying and a healthy run of Q2 earnings added substance to the optimism, while improving participation beyond the frontline indices lent the move greater credibility. For now, the stars appear aligned, with crude, yields, earnings and foreign flows all turning in the market’s favour, keeping the near-term bias constructive. Yet the rally’s staying power will ultimately depend on whether breadth remains strong and whether the hope of de-escalation translates into concrete progress on the ground,” said Vinod Nair, Head of Research at Geojit Investments.

US stocks

US stocks extended their losses on Thursday, with the Nasdaq Composite plunging 3.3% as investors continued to offload technology shares, particularly semiconductor companies and firms tied to the artificial intelligence (AI) infrastructure boom.

The broader selloff dragged the S&P 500 down 1.9%, while the Dow Jones Industrial Average shed 489 points, or 0.9%. Declines in technology stocks outweighed gains in select blue-chip counters.

Semiconductor and data centre-related stocks faced intensified selling for a second straight session, wiping out much of the gains from Wednesday's broad-based rally following Democrats' sweeping victories in the US midterm elections, Reuters reported.

The Philadelphia Semiconductor Index (SOX) plunged 7.1%, with major chipmakers, including Nvidia, Advanced Micro Devices (AMD), Intel and Marvell Technology, among the biggest losers.

European markets

Strong mining gains led European shares higher on Thursday, with the benchmark just shy of hitting a record high, while technology shares lagged as investors weighed the implications of a Democratic sweep in the US midterm elections.

The pan-European STOXX 600 index rose 0.7% to 661.99 points by 0905 GMT. All major regional benchmarks were also higher, led by a 1.7% gain in Spain's IBEX.

Estimates for European blue-chips' third-quarter earnings growth rose for a third consecutive week as the energy sector lifted forecasts, surpassing a strong second quarter to reach the highest level in four years, LSEG I/B/E/S data showed on Thursday.ompanies on Europe's benchmark STOXX 600 index are expected to report quarterly earnings growth of 25% in aggregate, up from 23.6% a week earlier, based on results from 212 companies and estimates for those yet to report.

Most active stocks in terms of turnover

ICICI Bank (Rs 5,677 crore), HDFC Bank (Rs 4,945 crore), BSE (Rs 3,932 crore), Bajaj Finance (Rs 3,139 crore), M&M (Rs 2,756 crore), RIL (Rs 2,559 crore), and SBI (Rs 2,525 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.

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Most active stocks in volume terms

Vodafone Idea (Traded shares: 30.71 crore), Yes Bank (Traded shares: 19.46 crore), Ashok Leyland (Traded shares: 9.91 crore), Groww (Traded shares: 8.23 crore), Suzlon Energy (Traded shares: 6.74 crore), HDFC Bank (Traded shares: 6.54 crore) and Vedanta Power (Traded shares: 5.9 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Minda Ind., Ashok Leyland, Authum Investment, Piramal Finance, Devyani International, JK Tyre and Sobha 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 Motilal Oswal, ICICI Bank, LG Electronics India, Aurobindo Pharma, Lenskart Solutions, Eternal and Emcure Pharma.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were PI Industries, Cummins India, Aptus Value Housing, Kirloskar Oil, Chennai Petro, TD Power System and MRPL.

52-week low

Among the ones which hit their 52-week lows on NSE included PI Industries, Aptus Value Housing and AIA Engineering.

Sentiment meter favours bulls

Out of the 3,723 stocks that traded on the NSE on November 5, Thursday, 2,547 stocks witnessed advances, 1,084 stocks saw declines while 92 stocks remained unchanged.

Also read | Bulls roar! Market value of BSE-listed companies crosses Rs 500 lakh cr for first time as Sensex soars 2,000 pts. More upside ahead?

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 disclaimers here.