Sunday, January 19, 2025
HomeStocksAhead of Market: 10 things that will decide stock market action on...

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

-



The Indian market ended in red on Thursday, tracking heavy selling in global equities after the U.S. Federal Reserve signalled fewer interest rate cuts in 2025, souring risk appetite and fanning fears of further outflows, particularly from foreign investors.

The benchmark BSE Sensex lost 964.15 points or 1.20% to settle at 79,218.05, while the broader Nifty 50 index closed at 23,951.70, lower by 247.15 points or 1.02%.

Here’s how analysts read the market pulse:

Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services said the Indian market saw a widespread decline following a global sell-off driven by the U.S. Fed’s hawkish stance on interest rates.

“Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt. However, the BoJ’s decision to keep its interest rate steady, which surprised economists, aided in reducing the selling pressure. Despite this, investor caution persisted amid ongoing FII selling, with a strategic shift towards defensive sectors like pharma as evidenced by their outperformance,” Nair added.

US markets

Wall Street’s main indexes regained some ground on Thursday, a day after the Federal Reserve’s projections of fewer-than-expected interest rate cuts and higher inflation next year wrong-footed some investors and pummeled U.S. stocks.

Traders now see just one quarter-point rate reduction by mid-2025, and see less than two cuts in total by the end of the year, compared with last week’s expectations of three rate cuts.Most megacap and growth stocks recovered some ground, with Tesla and Alphabet in the lead, gaining 2% and 1.7% respectively.

Tech View

The Nifty witnessed a sharp decline as it broke below the neckline of the inverse head and shoulders pattern, said Rupak De, Senior Technical Analyst at LKP Securities.

“On the lower end, it found support at the low of the right shoulder. Sentiment remains weak following a hawkish comment from the Fed, which could continue to weigh on market sentiment in the short term. Support is placed at 23,850, below which further correction appears likely. Resistance is seen at 24,200,” De added.

Most active stocks in terms of turnover

Kaynes Technology (Rs 2,303.78 crore), HDFC Bank (Rs 2,273.31 crore), Reliance Industries (Rs 1,760.25 crore), ICICI Bank (Rs 1,486.58 crore), TCS (Rs 1,297.47 crore), Axis Bank (Rs 1,295.46 crore) and Tata Motors (Rs 1,278.12 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 highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 28.59 crore), JP Power (Traded shares: 15.86 crore), Suzlon Energy (Traded shares: 5.62 crore), YES Bank (Traded shares: 5.13 crore), Zomato (Traded shares: 3.13 crore), IDFC First Bank (Traded shares: 2.92 crore) and Punjab National Bank (Traded shares: 2.88 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of KFIN Technologies, JP Power, Chennai Petro, Ipca Laboratories, Anant Raj, IFCI, Dr. Reddy’s Laboratories were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 221 stocks hit their 52 week highs today while 56 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Oracle, Mankind Pharma, Persistent System, Kaynes Technology, Coforge, Lemon Tree Hotels and Muthoot Finance.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Triveni Turbine, LTIMindtree, Craftsman Automation, Jubilant Ingrevia, Cummins India, DOMS Industries and ABB India.

Sentiment meter favours bulls

The market sentiments were bearish. Out of the 4,095 stocks that traded on the BSE on Thursday, 2,315 stocks witnessed declines, 1,680 saw advances, while 100 stocks remained unchanged.

Also read | Rupee breaches 85 mark first time to hit record low as Fed gives foggy outlook

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



Source link

LATEST POSTS

Disposable income and consumption take a hit as inflation, tepid hikes keep real wages on the downswing

Kolkata|Bengaluru: Inflation and muted average annual salary increases by India Inc. have resulted in the change in real wages for most employees ranging from...

Kotak, RBL feel pain of microfinance defaults

MUMBAI: Private banks continue to feel the pain of defaults in the microfinance segment. Kotak Bank and RBL Bank which declared their...

Mid-cap stocks to buy: Think beyond the correction, like a long-term investor: 5 mid-cap stocks from different sectors with upside potential of up to...

SynopsisWhen it comes to the stock market, it is not easy to think beyond the present. Recall August 2024. Nobody was thinking anything remotely...

Anthropomorphizing AI: Dire consequences of mistaking human-like for human have already emerged

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More In our rush to understand and...

Most Popular

spot_img