10 things that will decide D-St action on Wednesday

Indian benchmark indices closed lower on Tuesday, marking their biggest single-day loss in a month, as profit-booking and worries over foreign fund outflows to China—following its trade truce with the U.S.—weighed on sentiment.

The BSE Sensex declined 1,281.68, or 1.55%, to close at 81,148.22, while the Nifty 50 slipped 346.35 points, or 1.39%, to close at 24,578.35.

Here's how analysts read the market pulse:
The domestic market witnessed profit booking today, following yesterday’s sharp rally, said Vinod Nair, Head of Research, Geojit Investments, adding that the relief-driven surge—fuelled by easing global and domestic risks, including a reduction in trade war tensions and Indo-Pak geopolitical stress—appears to be taking a breather.


“This consolidation is primarily affecting large-cap stocks, while mid-cap and small-cap segments continue to gain traction. This divergence is expected to persist, supported by broad-based earnings improvements reflected in Q4 results so far,” said Nair.

Looking ahead, there is increasing optimism around FY26 earnings growth, underpinned by supportive fiscal and monetary policies, a rebound in external demand, a favorable monsoon outlook, and declining inflation and interest rates, said Nair, adding that “these factors collectively suggest that midcaps are well-positioned to catch up and potentially outperform in the coming quarters."

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US markets
Wall Street stocks mostly rose early Tuesday following benign inflation data after the prior session's rally over the deescalation of the US-China trade war.
The consumer price index eased to 2.3 percent in April from a year ago, a tick below the 2.4 percent figure recorded in March.

Analysts welcomed the data but said they still expect an uptick in inflation later in 2025 as tariffs trickle through the economy.
Tech View
The Nifty slipped lower as traders booked short-term profits, however, sentiment is likely to remain positive in the near term, despite some profit-taking following the recent sharp rise, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “the index continues to trade above the short-term moving average, confirming a bullish trend.”

“Additionally, it has been sustaining above the previous consolidation zone. In the short term, the index may continue its upward movement with the potential to reach 25,350. On the downside, support is placed at 24,400. A buy-on-dips strategy may be favorable as long as the index remains above this level," said De.

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Most active stocks in terms of turnover
BSE (Rs 3,879 crore), Bharat Dynamics (Rs 3,469 crore), Swiggy (Rs 3,047 crore), KFIN Technologies (Rs 2,689 crore), HDFC Bank (Rs 2,340 crore), PayTM (Rs 2,068 crore) and Infosys (Rs 2,029 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 highest trading turnovers in the day.

Most active stocks in volume terms
Vodafone Idea (Traded shares: 36.85 crore), YES Bank (Traded shares: 28.53 crore), Swiggy (Traded shares: 9.92 crore), Reliance Power (Traded shares: 7.24 crore), Canara Bank (Traded shares: 5.95 crore), Bharat Electronics Ltd (Traded shares: 5.79 crore) and Suzlon Energy (Traded shares: 5.56 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest
Shares of Tanla Platforms, Bharat Dynamics, Vishal Mega Mart, Inventurus Knowledge Solutions, Afcons Infrastructure, Schaeffler India and Gujarat State Petronet Ltd were among the stocks that witnessed strong buying interest from market participants.

52 Week high
Over 76 stocks hit their 52 week highs today while 30 stocks slipped to their 52-week lows.

Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were KFIN Technologies, UPL, Chambal Fertilisers & Chemicals, Welspun Living, Jyothy Labs, United Breweries and Aavas Financiers.

Sentiment meter bullish
The market sentiments were bullish. Out of the 4,101 stocks that traded on the BSE on Tuesday, 1,402 stocks witnessed declines, 2,559 saw advances, while 140 stocks remained unchanged.

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