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

The Indian market ended in the green on Wednesday, buoyed by advances in IT and oil & gas stocks, as positive cues from Asian markets and progress in trade talks between the U.S. and key partners like India and China boosted investor sentiment.

The BSE Sensex advanced 123.42 points, or 0.15%, to settle at 82,515.14, while the NSE Nifty eked out a gain of 37.15 points, or 0.15% to close at 25,141.40.

Here’s how analysts read the market pulse:
Profit booking continues in the broader markets, driven by elevated domestic valuations, said Vinod Nair, Head of Research, Geojit Investments, adding that “however, large-cap resilience is supporting the indices, with institutional investors favouring companies with stable earnings outlooks.”

The Auto and IT sectors remain in focus—Auto stocks are gaining on improved monthly sales, while IT are benefiting from optimism around a potential U.S.-China trade resolution, said Nair.

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US markets
Wall Street’s main indexes nudged higher on Wednesday, as a cooler-than-expected inflation report calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts.
Data showed consumer prices increased only marginally in May, but inflation is expected to accelerate in the coming months due to the Trump administration’s import tariffs.
Annually, headline inflation stood at 2.4%, lower than the 2.5% rise estimated by economists polled by Reuters.

A day after officials from Washington and Beijing agreed on a framework to put their tariff truce back on track, President Donald Trump said the U.S. deal with China was done, with Beijing to supply magnets and rare earth minerals.

Investors are awaiting more details from the two-day meeting and hoping for a lasting resolution to the trade tensions that have disrupted global markets for much of the year.

European shares
European shares saw their early gains evaporate, closing in the red on Wednesday, as the much-anticipated U.S.-China trade talks offered scant details, despite promises of high-level agreements.

The pan-European STOXX 600 had risen following a cooler-than-expected U.S. inflation report that eased tariff-related concerns and bolstered hopes for the Federal Reserve to cut rates.

Tech View
The Nifty remained volatile throughout the day before closing flat, but the overall sentiment remains positive as the index continues to hold above the breakout point, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “a golden crossover is in place, which supports the bullish outlook.”

“Any dip should be viewed as a buying opportunity. Crucial support is placed at 24,850. As long as the index holds above this level, the trend is likely to remain positive, with potential to move towards 25,350 in the short term,” said De.

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Most active stocks in terms of turnover
Reliance Power (Rs 3,374 crore), BSE (Rs 3,097 crore), Infosys (Rs 1,714 crore), Bharti Airtel (Rs 1,655 crore), Wockhardt (Rs 1,577 crore), United Spirits (Rs 1,473 crore) and Indian Energy Exchange (Rs 1,390 crore) were among the most active stocks on BSE 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: 57.13 crore), Reliance Power (Traded shares: 46.03 crore), JP Power (Traded shares: 25.93 crore), RattanIndia Enterprises (Traded shares:17.38 crore), Tata Teleservices (Traded shares:14.11 crore), Suzlon Energy (Traded shares: 9.99 crore) and YES Bank (Traded shares: 8.75 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest
Shares of Wockhardt, RattanIndia Enterprises, Neuland Labs, Oil India, Tata Teleservices, Crisil and Natco Pharma were among the stocks that witnessed strong buying interest from market participants.

52 Week high
Over 122 stocks hit their 52 week highs today while 36 stocks slipped to their 52-week lows.

Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Indian Energy Exchange, United Spirits, Engineers India, GRSE, Jyoti CNC Automation, BSE and Zen Technologies.

Sentiment meter bullish
The market sentiments were bullish. Out of the 4,180 stocks that traded on the BSE on Wednesday, 1,821 stocks witnessed declines, 2,227 saw advances, while 132 stocks remained unchanged.

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