Ahead of Market: 10 things that will decide stock market action on Thursday
Sensex and Nifty ended above pre-closing auction session levels after extreme volatility, despite an Rs 8 lakh crore market selloff. Elevated crude prices, foreign investor outflows and weak market breadth kept sentiment cautious.
By Debaroti Adhikary, ETMarkets.com | Updated:
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Sensex and Nifty rebounded during the closing auction session, but heavy selling, elevated crude prices and foreign fund outflows continued to weigh on market sentiment.
The wild swings during the closing auction session continued, with Sensex and Nifty closing higher than the pre-CAS levels after a sharp selloff that wiped off more than Rs 8 lakh crore from all BSE-listed companies on Wednesday.
Sensex was trading at 73,509 when the market entered the CAS session, with normal trading in stocks included in the F&O segment coming to an end for the day. The benchmark index’s indicative price immediately recovered all losses to briefly move into the green, rising near 73,872 before erasing all gains and closing in the red at 73,710. This is however 200 points higher than the pre-CAS level.
Nifty’s CAS swing was even more wild. Just before the CAS session, Nifty was trading at around 22,738. Right after CAS began, Nifty’s indicative price jumped more than 2% or over 500 points to trade near 23,240. The index later pared some gains to close at 22,811.
Also read | Why did market crash today?
Here's how analysts read the market pulse
Indian equities gave up strong early gains as elevated crude prices and continued FII selling overshadowed optimism surrounding India-US trade negotiations, said Vinod Nair, Head of Research, Geojit Investments. He noted that the profit-booking intensified across autos, financials, metals and realty, reflecting concerns over inflation, and margin pressures, while IT showed relative resilience amid improving earnings visibility and renewed investor appetite for the sector.
Resilient Q2 earnings and robust domestic institutional flows remain important market supports, but weak breadth and persistent foreign selling point to continued caution, he said, adding that the near-term direction will depend on the breadth of earnings delivery, progress on trade negotiations and foreign flows, with durable moderation in crude, global yields and currency volatility crucial for market stability.
US stocks
The tech-heavy Nasdaq gained on Wednesday after quarterly results from SpaceX and Super Micro Computer improved appetite for AI-linked stocks, while Netflix slipped as its forecast failed to impress investors.
Elon Musk's rocket and space technology firm rose 10.7% after he said on Tuesday that a merger of SpaceX and Tesla would be "a good idea". SpaceX also posted its first profit as a public company. Tesla shares were up 3.7%.
Super Micro jumped 12% to the top of the S&P 500 after the AI server maker forecast quarterly revenue and profit margin above Wall Street estimates, signaling that AI demand remained resilient.
European markets
European shares climbed higher on Wednesday, as a slate of strong corporate earnings helped even as sentiment remained battered by concerns over violent unrest in France.
The pan-European STOXX 600 index rose 0.84%.
Since riots erupted over the weekend in France, the second-largest economy in the euro zone, European stocks slipped about 1%. The country's government said it would ensure a massive deployment of troops to control the violence.
On Wednesday, investors picked up luxury stocks, riding on eyewear group EssilorLuxottica's strong results. The company topped the French share benchmark, which rose 0.4%.
France's bond yields rose again as investors took stock of the widespread protests across the country that have piled pressure on a government already struggling to shore up its finances.
Its 10-year bond yield hit a new 24-year high above 5%. The premium on French yields over benchmark 10-year German Bunds has also been edging back toward early October's 15-year high of nearly 160 bps.
French supermarket operator Carrefour fell 13% after it cut its guidance due to the recent protests.
The euro was down 0.1% at $1.1226. Against the Japanese yen, the dollar weakened 0.06% to 158.06.
Most active stocks in terms of turnover
L&T Tech (Rs 3,273 crore), ICICI Bank (Rs 2,446 crore), Infosys (Rs 2,162 crore), RIL (Rs 2,142 crore), HDFC Bank (Rs 1,878 crore), Bajaj Finance (Rs 1,729 crore), and Bharti Airtel (Rs 1,691 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: 52.58 crore), Yes Bank (Traded shares: 20.72 crore), JP Power (Traded shares: 8.26 crore), Suzlon Energy (Traded shares: 6.26 crore), Vishal Mega Mart (Traded shares: 5.43 crore), Wipro (Traded shares: 3.78 crore) and PNB (Traded shares: 3.11 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
India Cements, L&T Tech, Fractal Analytics, Ipca Labs, Hexaware Technologies, Wipro and Piramal Finance 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 HFCL and Karur Vyasa Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Himadri Speciality, Jindal Saw, Ramkrishna Forgings, Gallantt Metal, CreditAccess Grameen, JP Power and TD Power System.
52-week low
Among the ones which hit their 52-week lows on NSE included SRF, Cochin Shipyard, Vishal Mega Mart, Vedanta Oil and Gas, Vedanta Aluminium, NTPC Green Energy and HEG.
Sentiment meter favours bears
Out of the 3,698 stocks that traded on the NSE on October 21, Wednesday, 608 stocks witnessed advances, 2,988 stocks saw declines while 102 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 disclaimers here.
Sensex was trading at 73,509 when the market entered the CAS session, with normal trading in stocks included in the F&O segment coming to an end for the day. The benchmark index’s indicative price immediately recovered all losses to briefly move into the green, rising near 73,872 before erasing all gains and closing in the red at 73,710. This is however 200 points higher than the pre-CAS level.
Nifty’s CAS swing was even more wild. Just before the CAS session, Nifty was trading at around 22,738. Right after CAS began, Nifty’s indicative price jumped more than 2% or over 500 points to trade near 23,240. The index later pared some gains to close at 22,811.
Also read | Why did market crash today?
Here's how analysts read the market pulse
Indian equities gave up strong early gains as elevated crude prices and continued FII selling overshadowed optimism surrounding India-US trade negotiations, said Vinod Nair, Head of Research, Geojit Investments. He noted that the profit-booking intensified across autos, financials, metals and realty, reflecting concerns over inflation, and margin pressures, while IT showed relative resilience amid improving earnings visibility and renewed investor appetite for the sector.
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Resilient Q2 earnings and robust domestic institutional flows remain important market supports, but weak breadth and persistent foreign selling point to continued caution, he said, adding that the near-term direction will depend on the breadth of earnings delivery, progress on trade negotiations and foreign flows, with durable moderation in crude, global yields and currency volatility crucial for market stability.
US stocks
The tech-heavy Nasdaq gained on Wednesday after quarterly results from SpaceX and Super Micro Computer improved appetite for AI-linked stocks, while Netflix slipped as its forecast failed to impress investors.
Elon Musk's rocket and space technology firm rose 10.7% after he said on Tuesday that a merger of SpaceX and Tesla would be "a good idea". SpaceX also posted its first profit as a public company. Tesla shares were up 3.7%.
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Super Micro jumped 12% to the top of the S&P 500 after the AI server maker forecast quarterly revenue and profit margin above Wall Street estimates, signaling that AI demand remained resilient.
European markets
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European shares climbed higher on Wednesday, as a slate of strong corporate earnings helped even as sentiment remained battered by concerns over violent unrest in France.
The pan-European STOXX 600 index rose 0.84%.
Since riots erupted over the weekend in France, the second-largest economy in the euro zone, European stocks slipped about 1%. The country's government said it would ensure a massive deployment of troops to control the violence.
On Wednesday, investors picked up luxury stocks, riding on eyewear group EssilorLuxottica's strong results. The company topped the French share benchmark, which rose 0.4%.
France's bond yields rose again as investors took stock of the widespread protests across the country that have piled pressure on a government already struggling to shore up its finances.
Its 10-year bond yield hit a new 24-year high above 5%. The premium on French yields over benchmark 10-year German Bunds has also been edging back toward early October's 15-year high of nearly 160 bps.
French supermarket operator Carrefour fell 13% after it cut its guidance due to the recent protests.
The euro was down 0.1% at $1.1226. Against the Japanese yen, the dollar weakened 0.06% to 158.06.
Most active stocks in terms of turnover
L&T Tech (Rs 3,273 crore), ICICI Bank (Rs 2,446 crore), Infosys (Rs 2,162 crore), RIL (Rs 2,142 crore), HDFC Bank (Rs 1,878 crore), Bajaj Finance (Rs 1,729 crore), and Bharti Airtel (Rs 1,691 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: 52.58 crore), Yes Bank (Traded shares: 20.72 crore), JP Power (Traded shares: 8.26 crore), Suzlon Energy (Traded shares: 6.26 crore), Vishal Mega Mart (Traded shares: 5.43 crore), Wipro (Traded shares: 3.78 crore) and PNB (Traded shares: 3.11 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
India Cements, L&T Tech, Fractal Analytics, Ipca Labs, Hexaware Technologies, Wipro and Piramal Finance 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 HFCL and Karur Vyasa Bank.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Himadri Speciality, Jindal Saw, Ramkrishna Forgings, Gallantt Metal, CreditAccess Grameen, JP Power and TD Power System.
52-week low
Among the ones which hit their 52-week lows on NSE included SRF, Cochin Shipyard, Vishal Mega Mart, Vedanta Oil and Gas, Vedanta Aluminium, NTPC Green Energy and HEG.
Sentiment meter favours bears
Out of the 3,698 stocks that traded on the NSE on October 21, Wednesday, 608 stocks witnessed advances, 2,988 stocks saw declines while 102 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 disclaimers here.
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