10 things that will decide D-St action on Wednesday

The Indian stock market ended higher on Tuesday, joining a global relief rally after U.S. President Donald Trump signaled more tariff exemptions, helping the benchmarks recover losses from earlier this month amid broad-based buying across all sectors.

The benchmark BSE Sensex gained 1577.63 points or 2.10% to close at 76,734.89, while the broader Nifty 50 index closed at 23,328.55, higher by 500 points or 2.19%. Both the indices ended the week 0.3% lower.

Here's how analysts read the market pulse:
The rally is fuelled by the surprise pause in reciprocal tariffs which continued today led by the exemption on electronics goods also, said Vinod Nair, Head of Research at Geojit Investments, adding that the performance was broad-based, with sectors like financials, capital goods, realty and metals exhibiting optimism.

“Auto stocks gained on potential tariff relief and banking stocks benefited from deposit rate cuts. However, investors remain watchful considering future supply chain impact due to escalated tariffs on China and products like Steel, Car,” said Nair.

He added, “domestically, the focus has shifted to the earnings season which has a weak forecast while global recovery and RBI’s accommodative stance are supporting sentiment."

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US markets
Some trade policy relief and strong bank earnings helped push Wall Street up slightly on Tuesday, while U.S. government bonds and the dollar were steady, after U.S. President Donald Trump touted possible tariff changes on autos.

Trump said on Monday he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places. That followed Friday's move to exempt smartphones, computers and some other electronics from Trump's "reciprocal" tariffs.

The main U.S. stock indexes ticked higher on Tuesday, with Bank of America, Citigroup and Wells Fargo gaining after the trio of banking giants posted strong profits for the first quarter. The broad gains followed Monday's advance on Wall Street, its second straight daily rise for the first time since Trump announced his reciprocal tariff plan on April 2.

European Stocks

European shares rose on Tuesday as investors weighed fast-changing U.S. tariff plans, while shares of LVMH slumped after the luxury sector bellwether missed first-quarter sales estimates due to weak sales in the United States and China.

The pan-European STOXX 600 gained 1.6%, with most regional indexes in positive territory. The Italian bourse outpaced the pack with a 2.4% gain.

LVMH slid 7.8%, with the group losing its position as Europe's largest luxury company in terms of market capitalization to rival Hermes.

Luxury and beauty-related stocks across Europe took a hit following LVMH's results, with French firm Christian Dior down 8.3% and Spanish beauty company Puig shedding 4.4%. A gauge of luxury stocks also declined 1.5%.

Tech View
The Nifty has formed a Hanging Man pattern on the daily chart, indicating a possible pause in the current rally, said Rupak De, Senior Technical Analyst at LKP Securities that “on the other hand, the index closed above the 100-EMA on the daily chart, which suggests continued positivity. Additionally, the RSI has just entered a positive crossover.”

“Summing it up, although the sentiment appears positive, a hint of fatigue is visible in the index following the steep rally over the past few days. Therefore, the possibility of a minor pullback on the downside cannot be ruled out,” said De.

He added, “Support is placed at 23,300; a decisive break below this level could trigger a correction towards 23,000. Resistance is placed at 23,370 and 23,650."

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Most active stocks in terms of turnover

HDFC Bank (Rs 4,601 crore), ICICI Bank (Rs 2,049 crore), Mazagon Dock Shipbuilders (Rs 2,019 crore), Bharti Airtel (Rs 1,856 crore), Reliance Industries Ltd (Rs 1,663 crore), BSE (Rs 1,554 crore) and Infosys (Rs 1,450 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: 49.47 crore), JP Power (Traded shares: 6.37 crore), YES Bank (Traded shares: 6.12 crore), Suzlon Energy (Traded shares: 5.89 crore), Samvardhana Motherson International (Traded shares: 5.36 crore), IDFC First Bank (Traded shares: 5.09 crore) and Zomato (Traded shares: 4.50 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest
Shares of Sai Life Science, Intellect Design Arena, Data Patterns (India), Valor Estate, Akums Drugs & Pharma, PTC Industries and Mazagon Dock Shipbuilders were among the stocks that witnessed strong buying interest from market participants.

52 Week high
Over 91 stocks hit their 52 week highs today while 49 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Bajaj Finance and Bharti Airtel.

Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Aster DM Healthcare, Sumitomo Chemical India, Atul, Campus Activewear, Anand Rathi Wealth, Max Healthcare and Vedant Fashions.

Sentiment meter bullish
The market sentiments were bullish. Out of the 4,256 stocks that traded on the BSE on Tuesday, 833 stocks witnessed declines, 3,266 saw advances, while 157 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)