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Breadth turns negative

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Last Updated : Oct 16 2017 | 4:47 PM IST

Key benchmark indices pared gains in afternoon trade. At 13:23 IST, the barometer index, the S&P BSE Sensex rose 81.47 points or 0.25% at 32,514.16. The Nifty 50 index advanced 30.15 points or 0.30% at 10,197.60.

Earlier, both the Sensex and the Nifty had hit record high in early trade as positive trade data and encouraging comments from the IMF chief on the outlook for Indian economy cheered investors. Also, market sentiment was buoyant in a truncated trading week ahead of Diwali.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.18%. The S&P BSE Small-Cap index advanced 0.13%. Both the indices underperformed the Sensex.

The breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,343 shares fell and 1,212 shares rose. A total of 103 shares were unchanged.

IT major TCS was up 0.60% to Rs 2,572. The company announced that its customer BNP Paribas Securities Services teamed up with TCS to deliver Corporate Event Connect, an innovative blockchain-based platform, which will provide fast, accurate and secure corporate event announcements to clients around the world. The announcement was made during trading hours today, 16 October 2017.

Power generation stocks were mixed. NTPC (down 0.43%), Reliance Infrastructure (down 0.79%), Reliance Power (down 0.86%), GMR Infrastructure (down 0.93%), Adani Power (down 1%), CESC (down 1.53%) and JSW Energy (down 1.57%), edged lower. Jaiprakash Power Ventures (up 9.89%), NHPC (up 2.49%), Torrent Power (up 0.64%) and Tata Power (up 0.06%), edged higher.

State-run Power Grid Corporation of India was up 0.85%. State-run Coal India was up 0.68%.

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Metal shares were in demand. Jindal Steel & Power (up 2.95%), Vedanta (up 2.83%), NMDC (up 2.33%), JSW Steel (up 2.09%), Hindalco Industries (up 1.77%), National Aluminium Company (up 1.06%), Bhushan Steel (up 0.96%), Steel Authority of India (up 0.87%), Tata Steel (up 0.29%) and Hindustan Copper (up 0.24%), edged higher. Hindustan Zinc was down 0.27%.

On the macro front, the annual rate of inflation, based on monthly wholesale price index (WPI), stood at 2.6% (provisional) for the month of September 2017 as compared to 3.24% (provisional) for the previous month and 1.36% during the corresponding month of the previous year. The data was released by the government during market hours today, 16 October 2017.

India's merchandise exports rose by 25.67% to $28.61 billion in September 2017 over September 2016, helping the trade deficit narrow to $8.98 billion, the data released by the government after market hours on Friday, 13 October 2017 showed.

The International Monetary Fund (IMF) Chief Christine Lagarde reportedly said that the Indian economy is on a solid growth track in the medium and long term due to the structural reforms undertaken by the government, and the current slowdown due to implementation of the goods & services tax (GST) and demonetisation is short term. The IMF has last week lowered India's growth forecast for 2017-18 to 6.7% from its earlier estimate of 7.2%, citing lingering impact of demonetisation and transition cost to GST.

Overseas, European shares were trading higher in early trade as investors monitored the latest in political news coming out of the UK.

Media reports suggested that British leader Theresa May will be making her way to Brussels today, 16 October 2017, to meet with Jean-Claude Juncker, the president of the European Commission, and the European Union's chief Brexit negotiator Michel Barnier.

Asian stocks edged higher as investors digested the release of China inflation data. China's consumer price index rose 1.6% in September from a year ago. The producer price index rose 6.9% in the same period.

US stocks reached record highs on Friday, 13 October 2017 as investors bet on another strong earnings season. US Federal Reserve Chair Janet Yellen on Sunday, 15 October 2017 sketched a bright outlook for the US economy and for inflation prospects in coming months suggesting that the central bank will soon resume raising interest rates to reflect the strengthening economy. Most economists foresee the next rate hike -- the third this year -- coming in December.

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First Published: Oct 16 2017 | 1:22 PM IST

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