The Indian market ended higher on Tuesday, as Infosys’ announcement of a potential share buyback sparked a rally in IT stocks. Consumer discretionary shares also advanced amid optimism over broad cuts to goods and services taxes, while investor sentiment was further supported by growing expectations of a U.S. interest-rate reduction later this month.

The S&P BSE Sensex climbed 314 points, or 0.39%, to finish at 81,101, while the NSE Nifty 50 added 95 points, or 0.39%, to close at 24,869.

Here’s how analysts read the market pulse:

The domestic equity market edged higher today, buoyed by positive global cues, with a notable rebound in IT stocks linked to a buyback announcement from Infosys despite prevailing headwinds, said Vinod Nair, Head of Research at Geojit Investments, adding that “conversely, auto stocks came under pressure due to profit booking after recent gains on GST rationalisation.”

“The market sentiment is likely to remain range-bound amid lingering uncertainties over global trade negotiations. However, rising prospects of a FED rate cut, along with supportive domestic macros, may help sustain optimism in the short term,” said Nair.

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US markets

U.S. stocks are drifting around their record levels on Tuesday following the latest discouraging signal on the job market’s health. Wall Street is hoping for a slowdown that’s deep enough to get the Federal Reserve to cut interest rates, but not so overwhelming that it causes a recession.Traders have become convinced that the Federal Reserve will cut interest rates for the first time this year at its next meeting in a week to prop up the slowing job market. A report Tuesday offered the latest signal of weakness, as the U.S. government said its prior count of jobs across the country through March may have been too high by 911,000, or 0.6%.

Tech View

The Nifty traded with a positive bias and successfully reclaimed the 100-DMA at the 24,820 level, said Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, adding that momentum indicators and oscillators have turned positive, with the RSI crossing above the 50 mark, suggesting a short-term bullish momentum.

“However, the index remains at a critical juncture as it nears the key resistance zone around the 25,000 level, which continues to act as a significant hurdle. A decisive breakout above this level is essential to confirm the start of a fresh upward leg. On the downside, the immediate support of 21-DMA is placed at 24,720 level,” said Jain.

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Most active stocks in terms of turnover

Infosys (Rs 1,954 crore), HDFC Bank (Rs 1,354 crore), RIL (Rs 1,342 crore), Mahindra & Mahindra (Rs 1,064 crore), Maruti Suzuki (Rs 928 crore), ICICI Bank (Rs 907 crore) and Netweb Technologies (Rs 895 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: 80.76 crore), JP Power (Traded shares: 7.96 crore), YES Bank (Traded shares: 5.81 crore), NMDC (Traded shares: 3.92 crore), Sagility India (Traded shares: 3.52 crore), IDFC First Bank (Traded shares: 3.33 crore) and Ola Electric Mobility (Traded shares: 3.09 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Infosys, Tech Mahindra, Adani Ports SEZ, HCL Tech, Nestle India, TCS and Bajaj Finserv were among the stocks that witnessed strong buying interest from market participants.

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52 Week high

Over 144 stocks hit their 52 week highs today while 58 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Mahindra & Mahindra and Maruti Suzuki.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Eternal, NTPC, Titan Company, UltraTech Cement, IndusInd Bank, Tata Motors and Axis Bank.

Sentiment meter neutral

The market sentiments were neutral. Out of the 4,281 stocks that traded on the BSE on Tuesday, 2,211 stocks witnessed declines, 1,918 saw advances, while 152 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)