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Ahead of Market: 10 Factors Influencing Stock Market Action on Friday
The Indian stock market was closed on Thursday for the Christmas holiday. Following a low-volume trading session on Wednesday, Dalal Street saw a decline, with the Sensex and Nifty experiencing setbacks as foreign investors turned net sellers. The lack of fresh market triggers further dampened risk appetite, particularly affecting sectors like oil and gas, pharmaceuticals, and IT.
Market Performance:
– Sensex: Fell 116 points (0.14%), closing at 85,408.70.
– Nifty 50: Decreased by 35 points (0.13%), finishing at 26,142.10.
Current Market Insights
Vinod Nair, Head of Research at Geojit Investments, stated that Indian equities have largely remained flat in this holiday-shortened week, with trading volumes reflecting a similar trend observed in other Asian markets. He noted:
– The RBI’s recent liquidity initiatives, including Open Market Operations (OMOs) and a USD/INR buy-sell swap, are likely to enhance systemic liquidity and stabilize currency volatility.
– On the global front, stronger-than-expected US GDP data indicates economic resilience, despite rising unemployment impacting overall optimism.
– Gold has continued its upward trend due to a softer dollar and heightened geopolitical risks, which is supported by increasing expectations of further easing from the Federal Reserve.
– Brent crude oil prices are near multi-year lows, suggesting a favorable inflation outlook.
Future Market Considerations
Looking ahead, market activity is expected to stay subdued, but investors should monitor key developments regarding trade.
Technical Outlook:
Ajit Mishra, SVP Research at Religare Broking, emphasized:
– A “buy-on-dips” strategy is advisable while the Nifty holds its upward trend.
– Enhanced participation from the banking sector is crucial for fresh momentum, with a breakout above the 59,500 mark potentially stimulating further upward movement.
– Traders should adopt a stock-specific approach, focusing on consistently outperforming sectors like private banks, metals, and automobiles, while practicing disciplined risk management amid low trading volumes.
Market Movers and Trading Activity
Most Active Stocks by Turnover:
– JBM Auto: ₹2,302 crore
– Hindustan Copper: ₹2,030 crore
– Jupiter Wagons: ₹1,660 crore
– RIL: ₹1,375 crore
– HDFC Bank: ₹1,365 crore
– ICICI Bank: ₹1,220 crore
– Shriram Finance: ₹1,030 crore
Most Active Stocks by Volume:
– Vodafone Idea: 60.65 crore shares
– Reliance Power: 7.9 crore shares
– Jupiter Wagons: 4.9 crore shares
– Hindustan Copper: 4.7 crore shares
– Castrol India: 4.64 crore shares
– Ola Electric Mobility: 4.59 crore shares
– YES Bank: 4.54 crore shares
Notable Trends
Stocks Showing Buying Interest:
– JBM Auto
– Hindustan Copper
– Manappuram Finance
– Reliance Power
– IIFL Finance
– Nuvama Wealth Management
– Olectra Greentech
52-Week Highs and Lows:
– Over 115 stocks reached their 52-week highs, including Vedanta and Maruti Suzuki.
– Conversely, 102 stocks saw declines to their 52-week lows.
Stocks Under Pressure:
– Kajaria Ceramics
– Navin Fluorine
– HFCL
– Kirloskar Oil
– Godawari Power
– BSE
– DB Realty
Market Sentiment
Market sentiment remains bearish. Of the 4,332 stocks that traded on the BSE:
– Declines: 2,346 stocks
– Advances: 1,841 stocks
– Unchanged: 145 stocks
This overview captures the ongoing dynamics in the Indian market as it heads into the trading session on Friday. Market participants should stay alert to these developments and adjust their strategies accordingly.
(Disclaimer: The recommendations and opinions shared by experts are their own and do not necessarily reflect the views of the Economic Times.)