Key Factors Shaping the Indian Stock Market on Thursday

The Indian benchmark indices closed higher for the second consecutive session on Wednesday, extending the momentum from Tuesday, despite the heavy drag from IT stocks. Gains across most other sectors, bolstered by optimism around the India-US trade deal, helped offset the negative impact. The Nifty settled at 25,776, up 48.45 points or 0.19%, while the BSE Sensex rose 78.56 points, or 0.09%, to close at 83,817.69.

Meanwhile, the volatility gauge India VIX ended at 12.25, down 5% from the last closing.

Hitesh Tailor, Research Analyst at Choice Equity Broking, commented on the market trends. He noted that the index’s gap-down opening followed by sideways movement signaled early hesitation and a lack of strong directional conviction among participants. The RSI, at 54.61, remains in an uptrend but is still below the strong bullish zone. However, the index recovered in the latter half of the session to close near 25,776, indicating buying interest at lower levels and underlying resilience. Tailor sees immediate resistance in the 25,900–25,950 zone, with support placed at 25,600–25,650.

US markets struggled for direction on Wednesday, with the S&P 500 showing mixed performance and the Dow edging higher. Strong results from Eli Lilly and Super Micro Computer provided some support, but the software and services index, home to several leading cloud and software companies, fell for a sixth straight session, down more than 13% over the period, its steepest stretch of losses since March 2020. The losses reflect persistent concerns about how rapid advances in artificial intelligence could disrupt long-standing software business models.

European markets were mixed around 2:30 p.m. GMT (8:15 pm India time). The UK's FTSE 100 surged by 1.58%, while the Stoxx 600, French CAC 40, and Spain's IBEX were up by up to 1.44%. Germany's DAX, however, was down 0.33%.

Ajit Mishra, Senior Vice President, Research at Religare Broking, suggested that after the recent sharp swings, some consolidation would be healthy as long as the Nifty holds the 25,400–25,500 zone. On the upside, the index may attempt a move towards the 26,000 level, followed by a gradual push towards record highs. He advised participants to align positions accordingly, with an emphasis on stock selection and disciplined trade management.

In terms of turnover, GMR Airports (Rs 554 crore), PB Fintech (Policybazaar, Rs 424 crore), Hindustan Copper (Rs 304 crore), TCS (Rs 291 crore), Infosys (TMCV, Rs 208 crore), HAL (Rs 195 crore), and Dixon Technologies (Rs 144 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 the highest trading turnovers in the day.

In volume terms, GMR Airports (Traded shares: 5.73 crore), Vodafone Idea (Traded shares: 4.37 crore), GTL Infra (Traded shares: 4.31 lakh), RPower (Traded shares: 3.53 crore), Bharat Coking Coal (Traded shares: 92.73 lakh), Adani Power (Traded shares: 92.10 lakh), and Suzlon Energy (Traded shares: 72.99 lakh) were among the most actively traded stocks on BSE.

Gokaldas Exports, Emami, Eternal, Valor Estate, Trent, ONGC, NTPC, and Adani Ports were among the stocks that witnessed strong buying interest from market participants.

Over 89 stocks hit their 52-week highs on Wednesday, while 90 stocks slipped to their 52-week lows. Among the ones that hit their 52-week highs were Adani Ports, AIA Engineering, Accretion Nutraveda, Apex Frozen Foods, APL Apollo Tubes, Ashok Leyland, Jindal Steel, and JK Tyre & Industries.

Among the large-cap names witnessing selling pressure were Infosys, TCS, HCL Technologies, and Tech Mahindra Corporation. Other stocks that saw significant selling pressure included HAL, eClerx Services, Biofil Chemicals & Pharmaceuticals, JTL Industries, Cartrade Tech, Eureka Forbes, and Sai Life Sciences.

The sentiment meter favored bulls, with action in heavyweights like ICICI Bank, RIL, and Eternal aiding the markets, helping them close in the green. The breadth remained positive in broader markets. Out of the 4,366 stocks that traded on the BSE on February 4, Wednesday, 2,667 stocks witnessed advances, 1,535 saw declines, while 164 stocks remained unchanged.

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