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Market breadth turns negative

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Last Updated : Nov 14 2018 | 2:50 PM IST

A bout of volatility was witnessed in mid-afternoon trade as key indices once again slipped into the negative terrain and hit fresh intraday low. At 14:23 IST, the barometer index, the S&P BSE Sensex, was down 101.91 points or 0.29% at 35,042.58. The Nifty 50 index was down 37 points or 0.35% at 10,545.50. Weak global cues put pressure on bourses.

Among secondary barometers, the BSE Mid-Cap index was up 0.04%. The BSE Small-Cap index was down 0.34%.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1112 shares rose and 1372 shares fell. A total of 144 shares were unchanged.

Mahindra & Mahindra was down 1.79% after the company announced Q2 results during trading hours today, 14 November 2018. The results for M&M include the combined results of Mahindra and Mahindra (M&M) and Mahindra Vehicle Manufacturers Limited (MVML), which is a manufacturing unit of M&M.

Combined profit from ordinary activities after tax (after El) rose 26% to Rs 1779 crore in Q2 September 2018 over Q2 September 2017. Combined revenues and other income rose 8% to Rs 13638 crore in Q2 September 2018 over Q2 September 2017. Combined operating profit margin (OPM) was reported at 14.5% in Q2 September 2018, lower than 16% in Q2 September 2017.

Most pharmaceutical shares declined. Divi's Laboratories (down 2.16%), Lupin (down 2.01%), Cipla (down 1.69%), Alkem Laboratories (down 1.2%), GlaxoSmithKline Pharmaceuticals (down 0.74%), Strides Shasun (down 0.66%), Dr Reddy's Laboratories (down 0.64%), Aurobindo Pharma (down 0.5%), Piramal Enterprises (down 0.38%) and Wockhardt (down 0.37%), edged lower. IPCA Laboratories (up 1.75%) and Cadila Healthcare (up 3.57%), edged higher.

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Sun Pharmaceutical Industries lost 7.17% after the company reported consolidated net loss of Rs 108.84 crore in Q2 September 2018 as compared to net profit of Rs 1001.79 crore in Q2 September 2017. Total income rose 5.56% to Rs 7288.78 crore. The result was announced after market hours yesterday, 13 November 2018.

Adjusted net profit for Q2 September 2018 was at Rs 996 crore with resulting adjusted net profit margin at 14.5%. After accounting for the provision of Rs 1214 crore for the estimated settlement amount payable to all the remaining plaintiffs related to the Modafinil antitrust litigation in the US, the net loss for the quarter was at Rs 219 crore.

Glenmark Pharmaceuticals was down 3.09%. The company's consolidated net profit advanced 93.35% to Rs 414 crore on 26.33% rise in total income to Rs 2888.39 crore in Q2 September 2018 over Q2 September 2017. The result was announced after market hours yesterday, 13 November 2018.

Most FMCG shares rose. Godrej Consumer Products (up 3.94%), Hindustan Unilever (up 2.71%), Dabur India (up 2.59%), Marico (up 1.12%), Nestle India (up 1.11%), Jyothy Laboratories (up 0.92%), Bajaj Corp (up 0.17%) and Colgate Palmolive (India) (up 0.14%), edged higher. Procter & Gamble Hygiene & Health Care (down 0.19%), GlaxoSmithKline Consumer Healthcare (down 0.2%), Tata Global Beverages (down 0.64%) and Britannia Industries (down 0.92%), edged lower.

In the global commodities markets, Brent for January 2019 settlement was down 26 cents at $65.21 a barrel. The contract fell $4.65 a barrel or 6.63% to settle at $65.47 a barrel during the previous trading session.

India imports majority of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.

On the economic front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 5.28% (provisional) for the month of October 2018 (over October 2017) as compared to 5.13% (provisional) for the previous month and 3.68% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 4.64% compared to a build up rate of 2.12% in the corresponding period of the previous year. The data was disclosed during trading hours today, 14 November 2018.

Overseas, European stocks were trading lower on Wednesday after Italy defied the European Union's call to revise its spending targets and oil prices dived further into bear market territory.

The Italian government on Wednesday stuck to its contested 2019 deficit target of 2.4 percent of gross domestic product (GDP), defying the European Union's call for Rome to revise fiscal targets. Deputy Prime Minister Matteo Salvini warned the EU against issuing fines against Italy over its budgetary plans.

Brexit will likely be another area of focus for investors Wednesday after news of a key breakthrough between Britain and the EU on a divorce deal. Negotiators on neither side have reportedly agreed to a draft deal late Tuesday; British Prime Minister Theresa May will meet with her cabinet on Wednesday to get her ministers on side.

Most Asian shares edged lower as investors worry about slowing global growth with crude oil prices sinking on worries about weakening world demand and oversupply.

US stocks closed mostly lower after a volatile session Tuesday as oil prices tumbled, dragging the energy sector sharply lower, and a resolution of the US-China trade war remained elusive.

On the US data front, the National Federation of Independent Business small-business optimism index declined 0.5 points to a seasonally adjusted 107.4 in October, a four-month low. Further, the US ran a $100 billion deficit in October, wider than the $63 billion deficit recorded in October 2017 as spending rose by double digits and receipts only increased by 7%, according to the Treasury Department.

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First Published: Nov 14 2018 | 2:22 PM IST

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