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Breadth turns negative

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Last Updated : May 23 2018 | 3:50 PM IST

The main indices hit fresh intraday low in mid-afternoon trade as selling pressure intensified, triggered by weak global cues. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 158.17 points or 0.46% at 34,493.07. The Nifty 50 index was down 68 points or 0.65% at 10,468.70. Global stocks fell as investors continued to assess potential trade tensions, the possible cancellation of a June summit with North Korea and a fall in commodity prices.

After opening on a positive note, the market declined as the session proceeded. Indices hovered in a range with small losses in mid-morning trade. Indices pared losses in early afternoon trade.

The Sensex rose 17.23 points, or 0.05% at the day's high of 34,668.47 in early afternoon trade. The index fell 172.41 points, or 0.50% at the day's low of 34,478.83 in mid-afternoon trade, its lowest intraday level since 25 April 2018. The Nifty fell 3.15 points, or 0.03% at the day's high of 10,533.55 in early trade. The index fell 70.80 points, or 0.67% at the day's low of 10,465.90 in mid-afternoon trade, its lowest intraday level since 16 April 2018.

Among secondary barometers, the BSE Mid-Cap index and the BSE Small-Cap index were down by 0.01% each. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1199 shares rose and 1317 shares fell. A total of 136 shares were unchanged.

Most auto stocks declined. Eicher Motors (down 1.31%), Bajaj Auto (down 1.16%), Hero MotoCorp (down 0.77%), Maruti Suzuki India (down 0.61%), Mahindra & Mahindra (down 0.27%) and Escorts (down 0.15%), edged lower. Tata Motors (up 0.41%), TVS Motor Company (up 1.51%) and Ashok Leyland (up 1.63%), edged higher.

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Power generation stocks were mixed. Reliance Infrastructure (up 2.23%), Jaiprakash Power Ventures (up 1.98%), NHPC (up 1.89%), NTPC (up 1.52%) and JSW Energy (up 1.44%), edged higher. Reliance Power (down 0.3%), Tata Power (down 0.38%), CESC (down 0.69%), Adani Power (down 0.99%), GMR Infrastructure (down 1.45%) and Torrent Power (down 2.8%), edged lower.

State-run Power Grid Corporation of India was up 0.40%. State-run Coal India was down 0.43%.

On the political front, Janata Dal (Secular), or JD(S), leader H D Kumaraswamy will take oath as Chief Minister of Karnataka today, 23 May 2018, at 16:30 IST on the steps of the Vidhana Soudha, the state secretariat. Governor Vajubhai Vala will administer the oath of office and secrecy to Kumaraswamy.

The 12 May 2018 Karnataka assembly polls threw up a hung verdict with BJP emerging as the single largest party with 104 seats. The Congress was next with 78 and the JD(S) followed with 37. The BSP has one MLA and two seats went to Independents.

Overseas, European shares declined as a drop in crude prices weighed on energy companies. Asian shares slipped after US President Donald Trump said he was not satisfied with bilateral trade talks with China that occurred last week, but called them a start to working out the US trade imbalance with Beijing.

Meanwhile, China announced on Tuesday that it would reduce tariffs on some vehicles to 15% from as much as 25%. Tariffs on certain automotive parts would also be cut.

US stocks closed lower overnight as uncertainty over trade policy and other geopolitical issues remained high.

On the geopolitical front, Trump said Tuesday there was a substantial chance that a summit with North Korean leader Kim Jong Un may not work out. Trump's comments came as he met South Korean President Moon Jae-in ahead of a planned meeting, scheduled for 12 June 2018, with Kim.

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First Published: May 23 2018 | 2:25 PM IST

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