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

Indian equity benchmarks Sensex and Nifty staged a sharp rebound on Tuesday, jumping more than 1.5% each after Finance Minister Nirmala Sitharaman’s comments on LTCG tax and securities transaction tax, along with an IT rally and other factors, boosted investor sentiment.

Sensex jumped 1,109 points to close at 73,034, while the Nifty climbed around 359 points to end the session at 22,722. The sharp gains added around Rs 5 lakh crore to the total market capitalisation of all companies, pushing it up to Rs 470 lakh crore.

Broader markets also erased all early losses and swung into the green, with the Nifty Midcap 100 jumping more than 1% while the Nifty Smallcap 100 closed with marginal gains.


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Here's how analysts read the market pulse

"Indian equities advanced as stronger-than-expected technology earnings boosted confidence in corporate profit growth and lifted benchmark-heavy large-cap stocks. Rupee stability and easing bond yields further supported sentiment, bringing financial stocks into focus. However, with inflation near the upper end of the RBI’s tolerance band and geopolitical uncertainty keeping energy markets volatile, policymakers are likely to remain cautious on macro stability, potentially keeping the market range-bound. Still, the strong IT-led start and expectations of a decent overall Q2 corporate performance suggest the market is pricing in resilience despite a challenging external environment,” said Vinod Nair, Head of Research, Geojit Investments.

US stocks

Wall Street’s main indexes were little changed in choppy trading on Tuesday as chip stocks faced renewed selling pressure and investors assessed mixed quarterly results from major US banks.

At 10:20 a.m. ET, the Dow Jones Industrial Average rose 9.14 points, or 0.02%, to 51,859.69. The S&P 500 fell 6.36 points, or 0.08%, to 7,800.86, while the Nasdaq Composite declined 32.52 points, or 0.12%, to 27,213.38.


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Most active stocks in terms of turnover

HCL Tech (Rs 2,818 crore), TCS (Rs 2,474 crore), Infosys (Rs 2,283 crore), RBL Bank (Rs 1,530 crore), Paytm (Rs 1,527 crore), BSE (Rs 1,377 crore) and HDFC Bank (Rs 1,343 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: 24.19 crore), Suzlon Energy (Traded shares: 8.38 crore), Yes Bank (Traded shares: 6.4 crore), Pine Labs (Traded shares: 6.06 crore), Bandhan Bank (Traded shares: 5.16 crore), JP Power (Traded shares: 4.81 crore) and MMTC (Traded shares: 4.3 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Bandhan Bank, Birlasoft, HCL Tech, Elecon Engg Co, KPIT Tech, TCS and Shriram 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 PVR Inox, Aditya Infotech, PNB Housing and PTC Industries.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were RBL Bank, Sterlite Tech, Aegis Logistics, R R Kabel, Aether Industries, ICICI Pru Life and TD Power Systems.

52-week low

Among the ones which hit their 52-week lows on NSE included Vedanta Power, Natco Pharma, Tube Investments, Maruti Suzuki, Max Healthcare, Fortis Healthcare and Vedanta Aluminium.

Sentiment meter favours bulls

Out of the 3,706 stocks that traded on the NSE on October 13, Tuesday, 2,128 stocks witnessed advances, 1,418 stocks saw declines while 98 stocks remained unchanged.

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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.