Market Pulse: Key Factors Shaping Stock Market Action on Thursday
The Indian stock market closed higher on Wednesday, driven by foreign inflows and a rebound in major IT stocks. Analysts highlight key factors that could influence market action on Thursday, including FOMC minutes and Nvidia's earnings.
Stock MarketSensexNiftyForeign InflowsIt SectorReal Estate NewsNov 20, 2025
Here's how analysts read the market pulse:
Vinod Nair, Head of Research at Geojit Investments, noted that the Sensex and Nifty indices staged a strong rebound on renewed optimism over an India–U.S. trade deal, following encouraging comments from the Union Commerce Minister. Large caps outperformed the broader market, with the IT sector rallying on revived hopes of a Fed rate cut, supported by soft U.S. labour data and currency tailwinds. PSU banks also gained on merger-related news and improving fundamentals. Attention now turns to tomorrow’s FOMC minutes for further policy signals.
Wall Street's main indexes inched higher on Wednesday following a sharp sell-off earlier in the week. Investors are setting their eyes on Nvidia's earnings, due after markets close, which could be a make-or-break moment for the AI trade. Nvidia's earnings are seen as a litmus test for the AI-driven rally that has pushed markets to record highs this year.
European markets saw a decline, with the pan-European STOXX 600 falling 0.2% to 560.65 by 0910 GMT. The STOXX Aerospace and Defence Index declined to its lowest level since early September, down 2.6% by 1322 GMT, marking its biggest one-day fall in over a month. Shares in aerospace and defence companies like Rheinmetall, Renk, BAE Systems, Leonardo, and Saab were among the biggest fallers, with losses ranging from 4% to 7%.
On the technical front, the Nifty remained strong throughout the day, finding support at the 50EMA on the hourly chart and staging a smart recovery. Rupak De, Senior Technical Analyst at LKP Securities, noted that a falling channel breakout is visible on the hourly chart, suggesting rising optimism. The daily RSI (14) is in a bullish crossover and remains above 60. Overall, sentiment looks positive, with a potential move towards 26,200/26,350 in the near term. On the lower end, support is placed at 25,850.
In terms of turnover, HDFC Bank (Rs 1,961 crore), BSE (Rs 1,760 crore), Infosys (Rs 1,682 crore), Bharti Airtel (Rs 1,597 crore), ICICI Bank (Rs 1,434 crore), JP Power (Rs 1,291 crore), and Sammaan Capital (Rs 1,123 crore) were among the most active stocks on BSE.
In volume terms, JP Power (Traded shares: 65.2 crore), Vodafone Idea (Traded shares: 62.8 crore), Sammaan Capital (Traded shares: 6.7 crore), YES Bank (Traded shares: 6 crore), Suzlon Energy (Traded shares: 3.6 crore), Sagility India (Traded shares: 3.5 crore), and Samvardhana Motherson International (Traded shares: 3.4 crore) were among the most actively traded stocks on NSE.
Stocks showing strong buying interest included JP Power, L&T Technology Services, Linde India, Latent View Analytics, Intellect Design Arena, Endurance Technologies, and Max Healthcare.
Over 123 stocks hit their 52-week highs today, including Titan Company, Bharti Airtel, and SBI. Conversely, 205 stocks slipped to their 52-week lows. Stocks that witnessed significant selling pressure were Tata Motors PV, Maruti Suzuki, IndusInd Bank, Bajaj Finance, Adani Ports SEZ, ITC, and NTPC.
The market sentiment was bearish, with 2,338 stocks declining, 1,841 advancing, and 167 remaining unchanged out of the 4,346 stocks that traded on the BSE on Wednesday.
Frequently Asked Questions
What factors drove the Indian stock market higher on Wednesday?
The Indian stock market closed higher on Wednesday due to renewed foreign inflows and a rebound in major IT stocks, particularly Infosys, which was ahead of its Rs 18,000 crore share buyback.
What are analysts saying about the market's performance?
Analysts, such as Vinod Nair from Geojit Investments, attribute the market's strong rebound to renewed optimism over an India-U.S. trade deal, strong performance in large caps, and positive outlook for the IT sector due to potential Fed rate cuts.
What are Wall Street investors looking forward to on Thursday?
Wall Street investors are focusing on Nvidia's earnings, which are due after markets close on Wednesday. These earnings are seen as a critical test for the AI-driven rally that has pushed markets to record highs this year.
How did European markets perform on Wednesday?
European markets saw a decline, with the pan-European STOXX 600 falling 0.2% to 560.65 by 0910 GMT. The STOXX Aerospace and Defence Index fell to its lowest level since early September, down 2.6% by 1322 GMT.
What technical indicators are suggesting about the Nifty's future movement?
Technical analysts note that the Nifty remains strong, with a falling channel breakout visible on the hourly chart. The daily RSI (14) is in a bullish crossover and remains above 60, indicating positive sentiment and potential movement towards 26,200/26,350 in the near term.
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