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

Indian benchmark indices, Sensex and Nifty, reversed early losses to close nearly 1.5% higher on Thursday, lifted by strong gains in financial, auto, and IT stocks. Investor sentiment was buoyed by reports of a potential zero-tariff trade agreement between India and the U.S.

The BSE Sensex rose 1,200 points, or 1.48%, to close at 82,530, while the NSE Nifty gained 395 points, or 1.60%, to settle at 25,062.

Here's how analysts read the market pulse:

The market staged a robust rebound, closing with substantial gains, driven by a decline in domestic inflation and positive signals from the U.S. regarding a potential trade agreement with India, said Vinod Nair, Head of Research at Geojit Investments, adding that the benchmark index outperformed the broader market, buoyed by growing optimism around reduced operational costs and a potentially more accommodative monetary policy stance.

“Rate-sensitive sectors such as automobiles and real estate led the rally, supported by upbeat industry forecasts. Investor attention is now turning to the upcoming speech by the Federal Reserve Chair, which is anticipated to provide further clarity on the future policy trajectory, particularly in light of the recent easing in U.S. inflation data," said Nair.

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US markets

Wall Street dipped on Thursday as elation from the U.S.-China tariff truce faded for major indexes, while UnitedHealth's stock took a pummeling after a report of a DOJ fraud inquiry into the insurer.

UnitedHealth Group plunged 16% to its lowest level since April 2020.

The Wall Street Journal reported that the U.S. Department of Justice was conducting a criminal investigation into the company for possible Medicare fraud. However, the health insurer said it had not been informed of a criminal probe by federal prosecutors.

Walmart will have to start raising prices later this month due to the high cost of tariffs, executives said, even as the retail giant's U.S. comparable sales surpassed expectations in the first quarter. Its shares were down 4.8%.

European stocks

European shares reversed early declines to close higher on Thursday, with industrial stocks getting the biggest boost, while corporate earnings remained in the spotlight.

The continent-wide STOXX 600 index was up 0.6%. Most major regional indexes were higher, with Germany's up 0.7%.

Russian President Vladimir Putin spurned a challenge to meet face-to-face with Ukrainian President Volodymyr Zelenskiy in Turkey, dealing a blow to prospects for a peace breakthrough.

Most defence stocks were higher, with Hensoldt up 8.8%, Rheinmetall up 5.7% and Leonardo gaining 4%. The broader aerospace and defence index in Europe was up 2.3%.

Tech View

The recent consolidation breakout, along with a move above the swing high, has increased the probability of the index reaching 25,690 in the short term, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the immediate resistance is placed at 25,360, above which further upside potential may be unlocked.

“On the downside, 24,400 is expected to act as strong support in the short to medium term. A decisive break below this level could cause the ongoing rally to lose momentum. Until then, a buy-on-dips strategy is likely to remain effective," said De.

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Most active stocks in terms of turnover

Cochin Shipyard (Rs 3,600 crore), HDFC Bank (Rs 3,100 crore), Reliance Industries (Rs 2,908 crore), ICICI Bank (Rs 2,620 crore), GRSE (Rs 2,452 crore), BSE (Rs 2,416 crore) and Hindustan Aeronautics Ltd (Rs 2,355 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: 72.51 crore), YES Bank (Traded shares: 26.47 crore), Suzlon Energy (Traded shares: 7.99 crore), Tata Steel (Traded shares: 5.70 crore), NTPC (Traded shares: 4.33 crore), Reliance Power (Traded shares: 4.22 crore) and Eternal (Traded shares: 4.03 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Kirloskar Oil, eClerx Services, Apar Industries, KEC International, Kajaria Ceramic, Akums Drugs & Pharma and Triveni Turbine were among the stocks that witnessed strong buying interest from market participants.

52 Week high

Over 92 stocks hit their 52 week highs today while 28 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included ICICI Bank.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Hitachi Energy, Muthoot Finance, Neuland Laboratories, Piramal Pharma, Sagility India, Vijaya Diagnostic Centre and Tube Investments of India.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,114 stocks that traded on the BSE on Thursday, 1,327 stocks witnessed declines, 2,637 saw advances, while 150 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)