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Weak market breadth

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Capital Market
Last Updated : Nov 26 2018 | 1:50 PM IST

Stocks regained strength in afternoon trade amid volatility on buying demand in index pivotals. At 13:22 IST, the barometer index, the S&P BSE Sensex, was up 143.74 points or 0.41% at 35,124.76. The Nifty 50 index was up 32.15 points or 0.31% at 10,558.90. Gains were supported by a sharp decline in crude oil prices. The Sensex was currently trading above the psychological 35,000 mark after gyrating above and below that level in intraday trade.

Among secondary barometers, the BSE Mid-Cap index was down 0.21%. The BSE Small-Cap index was down 0.35%.

The market breadth, indicating the overall health of the market, was weak. On BSE, 922 shares rose and 1498 shares fell. A total of 162 shares were unchanged.

Hindustan Unilever (up 3.51%), Asian Paints (up 2.5%), Bharti Airtel (up 2.35%), HDFC Bank (up 1.83%) and IndusInd Bank (up 1.76%) edged higher from the Sensex pack.

Yes Bank (down 5.29%), ONGC (down 3.94%) and Vedanta (down 3.48%) edged lower from the Sensex pack.

Cochin Shipyard rose 3.14% to Rs 389 after the company announced buyback of up to 43.95 lakh shares at Rs 455 per share for a maximum amount of Rs 200 crore through the tender offer process. The buyback opens on 28 November 2018 and closes on 11 December 2018. The announcement was made on Friday, 23 November 2018 when the stock markets were closed for local holiday.

Crude oil prices slumped to 2018 lows on Friday, pulled down by an emerging crude supply overhang. In the global commodities markets, Brent for January 2019 settlement was up $1.03 at $59.83 a barrel. The contract fell $4.68 a barrel or 7.37% to settle at $58.80 a barrel during the previous trading session.

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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.

Overseas, Asian indices were trading higher. Trading sentiment was cautious as plunging oil prices fanned worries about a dimming outlook for the global economy. Investors also braced for a crucial meeting between US and Chinese leaders at the end of week.

US stocks closed lower Friday, pressured again by falling oil prices, which drove the indices to the second straight week of declines.

Investors also keyed in on developments in European politics, after the UK and European Union both announced progress on Thursday in outlining their future relationship after Britain exits the EU.

On the US data front, the Markit flash reading on manufacturing PMI fell to 55.4 in November, a three-month low.

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First Published: Nov 26 2018 | 1:26 PM IST

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