This is how analysts read the market pulse:
Indian markets have reacted enthusiastically to the RBI’s unexpected 25 basis point rate cut – a move that seemed unlikely given strong second quarter GDP data. The surprise cut, coupled with sharply lower inflation forecasts and supportive liquidity measures, has led to risky sentiment in equities, said Vinod Nair, head of research at Geojit Financial Services. Interest rate sensitive sectors such as auto, real estate and NBFCs are leading the gains due to lower financing costs.”While private banks have also risen on expectations for government bond gains, concerns over net interest margins (NIMs) have limited their upside potential. Overall, the short-term outlook remains cautiously positive, with an emphasis on strong corporate earnings in December. Near-term risks, such as a widening current account deficit and global trade balance tensions, continue to pose challenges. The US Fed’s stance on rate cuts will be key to maintaining the domestic trend this month,” said Nair.
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American markets
U.S. stocks moved higher on Friday, ending the week with modest gains, as new economic data boosted already high expectations of a Federal Reserve rate cut next week.
The Dow Jones Industrial Average added 104.05 points (or 0.22%) to close at 47,954.99. The S&P 500 rose 13.28 points, or 0.19%, to 6,870.40, while the Nasdaq Composite rose 72.99 points, or 0.31%, to 23,578.13.
European markets
European shares ended Friday largely unchanged, ending the week with modest gains as investors priced in a long-delayed U.S. inflation reading that boosted expectations of a Fed rate cut next week.
The pan-European Stoxx 600 closed flat at 578.87, snapping a three-day winning streak. The benchmark was still up 0.4% this week, continuing its gains from the week before.
Technical view
The Nifty moved sharply higher on Friday, supported by monetary policy outcomes, and the trend remains positive as the index holds above the 21-day EMA, said Rupak De, Senior Technical Analyst at LKP Securities. “On the hourly chart, the index has seen a breakout from the recent consolidation, indicating increasing optimism. The RSI has regained a bullish crossover, indicating strong momentum,” he added.
“In the near term, the trend may remain strong with the potential for the Nifty to move towards 26,300/26,440. Support is estimated at 26,060-26,000. Buying on dips may be preferable as long as the index remains above 26,000,” De said.
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Most active stocks in terms of turnover
Kaynes Technology (Rs 3,869 crore), InterGlobe (Rs 3,587 crore), TCS (Rs 1,702 crore), Infosys (Rs 1,674 crore), SBI (Rs 1,668 crore), RIL (Rs 1,563 crore) and Hindustan Copper (Rs 1,535 crore) were among the most active stocks on the BSE by value. High turnover usually indicates strong trading interest in these counters.
Most active stocks by volume
Vodafone Idea (98.39 crore shares), YES Bank (8.13 crore), Suzlon Energy (6 crore), Ola Electric Mobility (5 crore), Hindustan Copper (4.18 crore), JP Power (3.64 crore) and Eternal (3.35 crore) were among the most actively traded stocks on the NSE by volume.
Stocks that show buying interest
M&M Financial, Rashtriya Chemicals, Patanjali Foods, Sundaram Finance, SBI Card, Indus Towers and PTC Industries attracted strong buying interest from market participants.
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52 weeks high
More than 91 stocks hit their 52-week highs on Friday, while 304 stocks fell to their 52-week lows. Notable names that hit new highs included Hero MotoCorp and NALCO.
Stocks see selling pressure
Counters that witnessed significant selling pressure included Kaynes Technology, Vijaya Diagnostic, Syrma SGS Technology, HUL, Data Patterns (India), Premier Energies and PG Electroplast.
Sentiment Gauge: Bearish
Market breadth remained weak. Of the 4,328 stocks trading on the BSE, 2,342 fell, 1,805 advanced and 181 remained unchanged, reflecting bearish undertones.
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(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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