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

After opening higher, Indian equities reversed course on Monday, with the Sensex tumbling nearly 1,000 points from the day’s high as persistent FII selling, rising bond yields and other headwinds overshadowed early optimism.

Sensex dropped nearly 548 points to close at 71,925 while Nifty 50 declined almost 157 points to end the session at 22,363. This came while India VIX, which measures volatility in the market, jumped over 6% to cross 15. The Sensex had opened over 400 points higher before quickly reversing course and wiping out its opening gains.

Also read | Why market fell today?



Here's how analysts read the market pulse

"Indian markets failed to hold on to early gains as sentiment weakened amid a rise in the 10-year bond yield to a three-year high and continued FII outflows driven by external uncertainties. The rupee rebounded after the RBI opened a special window for oil marketing companies' dollar requirements and tightened hedging norms, helping ease pressure on the currency. Banking stocks led the decline after the RBI raised the daily CRR maintenance requirement to absorb surplus liquidity, while investors await domestic CPI inflation data for clues on the scope for further monetary tightening. The Middle East remains a key overhang, with continued Houthi attacks on Saudi and regional energy infrastructure keeping concerns over potential supply disruptions and elevated crude oil prices alive. Large-cap stocks remained under pressure from foreign fund selling, while mid- and small-caps outperformed on expectations of a stronger Q2FY27 earnings season,” said Vinod Nair, Head of Research at Geojit Investments.

US stocks

The S&P 500 and Nasdaq traded flat on Monday as weakness in technology stocks offset gains in energy and communication services. Investors remained cautious as oil prices reached two-week highs ahead of major bank earnings and inflation data that could influence the Federal Reserve’s interest-rate outlook, Reuters reported.

Also read | Dolly Khanna portfolio: Ace investor sells 4 lakh shares of Chennai Petroleum in Q2, stock up 82% in one year


Most active stocks in terms of turnover

Adani Ports (Rs 1,912 crore), New India Assurance (Rs 1,662 crore), Gallantt Metal (Rs 1,339 crore), Lenskart Solutions (Rs 1,322 crore), RIL (Rs 1,318 crore), Poonawalla Fincorp (Rs 1,299 crore) and HDFC Bank (Rs 1,284 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: 32.77 crore), Suzlon Energy (Traded shares: 14.18 crore), IFCI (Traded shares: 9.18 crore), New India Assurance Company (Traded shares: 9.11 crore), Yes Bank (Traded shares: 5.31 crore), Ola Electric Mobility (Traded shares: 4.86 crore) and Meesho (Traded shares: 3.75 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Gallantt Metal, New India Assurance Company, CarTrade Tech, Tata Chemicals, Prime Focus, Syngene International and Craftsman Automation 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 PVR Inox, PTC Industries, Laurus Labs, Cupid and Aditya Infotech.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Birlasoft, Lenskart Solutions, Avenue Supermart, Usha Martin, Fortis Healthcare, Dabur India and Apollo Hospital..

52-week low

Among the ones which hit their 52-week lows on NSE included Avenue Supermart, Max Healthcare, HUL, Swiggy, Voltas, Vishal Mega Mart and Torrent Power.

Sentiment meter favours bears

Out of the 3,706 stocks that traded on the NSE on October 12, Monday, 1,795 stocks witnessed advances, 1,798 stocks saw declines while 113 stocks remained unchanged.

Also read | Will RBI’s CRR hike to 99% hit HDFC, SBI and other bank stocks? Here’s what Jefferies says


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.