Ahead of the market: 10 things that will determine stock market action on Tuesday

India’s benchmark indices ended in the red on Monday as broad selling in banks and consumer firms and across all major sectors dragged down the market. Investor sentiment turned cautious after the government confirmed two cases of human metapneumovirus (HMPV) in Karnataka and one in Gujarat amid concerns over an outbreak of the virus in China.

The benchmark BSE Sensex fell 1258.12 points, or 1.59%, to close at 77,964.99, while the broader Nifty 50 index ended 388.70 points, or 1.62% lower, at 23,616.05.

Here’s how analysts read the pulse of the market:

Commenting on the day’s action, Vinod Nair, head of research at Geojit Financial Services, said uncertainties surrounding new US economic policies, the Fed’s hawkish stance on future rate cuts, a possible revision to CY25 inflation and a strong dollar, are all weighing negatively on market sentiment.

“The primary catalyst for the sharp sell-off in the local market appears to be concerns over human metapneumovirus (HMPV). Further, preliminary Q3 consensus earnings estimates suggest a possible gradual recovery in domestic corporate earnings, which may explain the underperformance of the domestic market relative to global markets led by premium valuations,” Nair added.

US markets

Wall Street’s major indexes opened higher on Monday, buoyed by optimism in AI-driven technology stocks and reports suggesting the incoming Trump administration may take a softer approach to tariffs than initially expected. The Dow Jones Industrial Average rose 103.4 points (0.24%) to open. at 42,835.52. The S&P 500 rose 40.3 points (0.68%) to 5,982.81, while the Nasdaq Composite added 230.3 points (1.17%) to 19,851.99.

Tech View

Markets have returned to the recent sell-on-rally trend that reflects cautious investor sentiment, said Satish Chandra Aluri, head of research at Lemon Markets Desk.

“Any sustained market recovery is dependent on positive Q3 results and growth-supporting measures from the Budget. Technically, the Nifty 50 broke the key support level and may test the recent lows around 23,200-23,300 if the selling continues. On the upside, the Nifty 50 may face resistance around 24,000,” Aluri added.

Most active stocks in terms of turnover

ITI Ltd (Rs 4,388.54 crore), Aegis Logistics (Rs 2,016.03 crore), Reliance Industries (Rs 1,830.87 crore), HDFC Bank (Rs 1,623.11 crore), Bajaj Finance (Rs 1,425.10 crore) and Zomas, Rs 47.4 crore. (Rs. 1,392.60 crore) was one of the most active stocks on the NSE in terms of value. High activity in a counter in terms of value can help identify counters with the highest trading turnover in a day.

Most active stocks in terms of volume

Vodafone Idea (Traded Share: 43.83 Crore), Easy Trip Planners (Traded Share: 16.50 Crore), Yes Bank (Traded Share: 12.18 Crore), ITI Limited (Traded Share: 8.39 Crore), Suzlon Energy (Traded Share: 6.24 Crore), Union Bank India ( Shares traded: 5.24 crore) and Zomato (Shares traded: 5.22 crore) was one of the most actively traded stocks in terms of volume on the NSE.

Stocks show interest in buying

Shares of ITI Ltd, PTC Industries, Linde India, Equitas Small Finance Bank, Easy Trip Planners, Aegis Logistics and Devyani International witnessed strong buying interest from market participants.

52 week high

Over 176 stocks touched their 52-week highs today while 113 stocks slipped to their 52-week lows. Among those touching their 52-week high were ITI Ltd, PTC Industries, Apar Industries, Jubilant Food, Krishna Institute of Medical Sciences, Coromandel International and InfoAge (India).

Selling pressure is seen in stocks

Significant selling pressure was seen from ITC, HEG, Swan Energy, Union Bank India, Intellect Design, JM Financial and IREDA.

The sentiment meter favors the bears

Market sentiment was bearish. Out of 4,244 stocks traded on BSE on Monday, 3,530 stocks declined, 611 stocks gained, while 103 stocks remained unchanged.

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