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Market breadth turns positive

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Capital Market
Last Updated : Jun 08 2018 | 11:31 AM IST

Key benchmark indices came off day's low in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 62.89 points or 0.18% at 35,400.19. The Nifty 50 index was down 19.15 points or 0.18% at 10,749.20. Recovery was backed by gains in shares of IT and pharma companies, which rose due to sliding rupee.

The indices opened lower and hit intraday low in early trade. The indices recovered in morning trade. The Sensex fell 47.89 points, or 0.14% at the day's high of 35,415.19 in morning trade. The index fell 153.96 points, or 0.43% at the day's low of 35,309.12 in early trade. The Nifty fell 18.50 points, or 0.17% at the day's high of 10,749.85 in morning trade. The index fell 50.65 points, or 0.47% at the day's low of 10,717.70 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.39%. The BSE Small-Cap index was up 0.41%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned positive from negative. On BSE, 1013 shares rose and 879 shares fell. A total of 73 shares were unchanged.

Shares of IT and pharma companies bucked weak market trend due to sliding rupee. Weakness in rupee could boost revenue of IT and pharma companies in rupee terms as these sectors derive substantial revenue from exports.

Among IT stocks, MindTree (up 2.35%), MphasiS (up 1.80%), Tech Mahindra (up 1.77%), HCL Technologies (up 1.22%), TCS (up 1.13%), Hexaware Technologies (up 0.89%), Infosys (up 0.66%) and Oracle Financial Services Software (up 0.10%), edged higher. Persistent Systems (down 0.31%) and Wipro (down 0.38%), edged lower.

Among pharmaceutical shares, Strides Shasun (up 4.78%), IPCA Laboratories (up 4.16%), Sun Pharmaceutical Industries (up 3.31%), Cadila Healthcare (up 3.21%), Dr Reddy's Laboratories (up 2.53%), Glenmark Pharmaceuticals (up 2.19%), Cipla (up 2.17%), Lupin (up 2.04%), Aurobindo Pharma (up 1.98%), Wockhardt (up 1.92%), Piramal Enterprises (up 1.10%), Divi's Laboratories (up 0.31%) and Alkem Laboratories (up 0.24%), edged higher. GlaxoSmithKline Pharmaceuticals was down 0.64%.

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In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 67.4925, compared with its close of 67.125 during the previous trading session.

The India Meteorological Department (IMD) stated yesterday, 7 June 2018, that Southwest Monsoon further advanced into some more parts of Central Arabian Sea, remaining parts of Coastal Karnataka, most parts of South Interior Karnataka and Goa and some parts of North Interior Karnataka. Conditions are favorable for further advance of Southwest Monsoon into some more parts of Central Arabian Sea, remaining parts of Goa, some parts of south Maharashtra, remaining parts of Karnataka and Rayalaseema, some parts of Telangana, some more parts of Coastal Andhra Pradesh and West Central Bay of Bengal during next 24 hours. Conditions are very likely to become favorable for further advance of Southwest Monsoon into some more parts of Maharashtra, Telangana & Coastal Andhra Pradesh in subsequent 48 hours.

Conditions are also likely to become favorable for further advance of Southwest Monsoon into most parts of Arabian Sea, remaining parts of Maharashtra, some parts of south Gujarat region, southern parts of Madhya Pradesh & Chhattisgarh, Odisha, West Bengal & Sikkim, remaining parts of Northeastern States and most parts of Bay of Bengal during 9th to 11th June 2018. In association with the likely strengthening of south west monsoon and likely formation of a low pressure system over the Bay of Bengal, enhanced rainfall activity with heavy to very heavy and isolated extremely heavy rainfall is likely along the west coast during 8th to 11th June 2018, IMD said.

Overseas, Asian stocks declined after the mixed close on Wall Street. Japan's economy shrank at an annualized pace of 0.6% in the January-March quarter.

In US, the S&P 500 and Nasdaq Composite ended with modest losses on Thursday, as a selloff in major technology shares put pressure on the benchmarks. Traders were cautious as leaders of the Group of Seven nations kicked off a summit in Canada. The G-7 summit takes place in Canada on Friday, 8 June 2018, and Saturday, 9 June 2018, with the issues related to protectionism and international trade expected to take center stage.

On the US data front, initial jobless claims fell slightly in early June, keeping the rate of layoffs in the US near a 50-year low. Household wealth topped $100 trillion for the first time in the first quarter, the Federal Reserve said. Consumer credit in April slowed to a seasonally adjusted annual rate of 2.9%, or $9.3 billion, down from 3.8% in March.

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First Published: Jun 08 2018 | 10:22 AM IST

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