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

The Indian stock market slipped into the deep red on Monday, with the Sensex and Nifty falling up to 1.6% each as soaring oil prices and bond yields, amid the escalating Iran-US conflict, spooked investors.

The Sensex plunged over 1,124 points to close below 72,772, while the Nifty 50 dropped more than 360 points to end the session near 22,780. The sharp sell-off wiped out nearly Rs 8 lakh crore from the total market capitalisation of BSE-listed companies, bringing it down to around Rs 474 lakh crore

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Here's how analysts read the market pulse

Bears remained firmly in control as the market breached a key psychological support level, reflecting growing investor caution amid deteriorating global macro conditions, said Vinod Nair, Head of Research, Geojit Investments. He noted that the US' rejection of the ceasefire proposal has heightened concerns that tensions in West Asia could persist for longer than anticipated, reducing the likelihood of a near-term diplomatic resolution and increasing the risk of prolonged supply-side disruptions and higher commodity prices.

While rising US bond yields are narrowing the India-US yield spread, potentially leading to foreign fund outflows and keeping market sentiment cautious, selling pressure remained broad-based across sectors as investors reassessed risk amid growing expectations of another Fed rate hike, Nair said. In addition, market participants are likely to remain cautious ahead of the upcoming RBI policy decision, with global liquidity conditions, bond yield movements, oil prices, and policy signals expected to drive sentiment in the near term, the analyst further said.

US stocks

Wall Street's main indexes fell on Monday after President Donald Trump rejected an Iranian proposal to end the conflict, leading to a spike in crude prices that revived inflation worries and drove Treasury yields higher.

Offsetting broader market gloom was Nvidia's 3.2% gain after the chip giant announced a $150 billion share repurchase authorization, making it the company's biggest ever increase in share buybacks on record.

Iran announced a peace proposal at last week's United Nations General Assembly in New York, saying it had been relayed to the United States through Qatari mediators. While Trump said on Saturday he had rejected the offer, he told Axios on Sunday that he expected US negotiators to continue talks this week.

Crude prices jumped 2% to around $107-a-barrel and weighed on Treasuries, sending longer-dated yields to fresh multi-decade highs.

European markets

European equity markets were a bright spot. The STOXX 600 was up 0.1%, driven by oil and gas stocks.


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Most active stocks in terms of turnover

Reliance Industries (Rs 1,639 crore), HDFC Bank (Rs 1,565 crore), PB Fintech (Rs 1,270 crore), BSE (Rs 1,228 crore), SBI (Rs 949 crore), Infosys (Rs 856 crore), and Bharti Airtel (Rs 831 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: 50 crore), Yes Bank (Traded shares: 12.18 crore), Ola Electric (Traded shares: 8.39 crore), Tata Teleservices (Traded shares: 7.94 crore), Suzlon Energy (Traded shares: 6.73 crore), FirstCry (Traded shares: 3.85 crore) and IFCI (Traded shares: 3.42 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Tata Teleservices, Elecon Engineering, Aegis Vopak Terminals, Go Digit General Insurance, MRPL, Crisil and GSK Pharma 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 Cadila Healthcare, Engineers India and Welspun Corp.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Manappuram Finance, Yes Bank, Bank of India, Vodafone Idea, Nippon Life AMC, Poly Medicure and Adani Green Energy.

52-week low

Among the ones which hit their 52-week lows on NSE included Bharti Hexacom, India Cements, Bank of Baroda, Aditya Birla Retail, REC, IRB Infra Developers and DCM Shriram.

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Sentiment meter favours bulls

Out of the 3,676 stocks that traded on the NSE on September 28, Monday, 869 stocks witnessed advances, 2,716 stocks saw declines while 91 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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