Market breadth turns negative

Key benchmark indices trimmed gains after hitting fresh intraday high in morning trade. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 73.92 points or 0.21% at 35,393.27. The Nifty 50 index was up 12.40 points or 0.12% at 10,754.10. Metal shares declined.

Key indices opened higher and briefly hit fresh intraday high in morning trade. Indices pared gains as profit booking emerged at higher levels. The Sensex rose 181.41 points, or 0.51% at the day's high of 35,500.76 in early trade, its highest intraday level since 2 February 2018. The index rose 34.61 points, or 0.10% at the day's low of 35,353.96. The Nifty rose 43.85 points, or 0.41% at the day's high of 10,785.55 in early trade, its highest intraday level since 2 February 2018. The index rose 6.85 points, or 0.06% at the day's low of 10,748.55.

Among secondary barometers, the BSE Mid-Cap index was down 0.40%. The BSE Small-Cap index was down 0.04%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 986 shares rose and 1042 shares fell. A total of 83 shares were unchanged.

Metal shares declined. NMDC (down 0.75%), Hindustan Zinc (down 0.72%), Tata Steel (down 0.72%), Steel Authority of India (down 0.66%), National Aluminium Company (down 0.57%), Hindalco Industries (down 0.4%), Vedanta (down 0.19%) and JSW Steel (down 0.05%), edged lower.

Jindal Steel & Power was down 2.05%. The company reported consolidated net loss of Rs 426.35 crore in Q4 March 2018 compard with net loss of Rs 98.37 crore in Q4 March 2017. Net sales rose 39.93% to Rs 8522.79 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 9 May 2018.

FMCG shares were mixed. Procter & Gamble Hygiene & Health Care (up 1.25%), Dabur India (up 0.62%), Marico (up 0.51%), Nestle India (up 0.36%), Bajaj Corp (up 0.31%), GlaxoSmithKline Consumer Healthcare (up 0.23%) and Hindustan Unilever (up 0.23%), edged higher. Colgate Palmolive (India) (down 0.18%), Godrej Consumer Products (down 0.46%), Jyothy Laboratories (down 0.55%), Britannia Industries (down 0.83%) and Tata Global Beverages (down 0.86%), edged lower.

Overseas, Asian shares were trading higher, tracking Wall Street's advance as oil prices traded higher after touching multi-year highs overnight.

In US, the broader stock market rallied as sharp gains in energy, financials and technology stocks propelled the main benchmarks firmly higher.

On the data front, US wholesale prices rose a scant 0.1% in April to mark the smallest gain since the end of 2017, perhaps a sign inflationary pressures are leveling off after a prolonged upsurge. The 12-month rate of wholesale inflation slipped to 2.6% from 3%. The so-called core rate of wholesale inflation also increased 0.1%. The core rate is a closely watched category that excludes food, energy and retail-trade margins. The yearly rate of core inflation slipped to 2.5% from 2.9%.

Meanwhile, the US Energy Information Administration reported Wednesday that crude supplies fell by 2.2 million barrels for the week ended 4 May 2018. The decline followed back-to-back weekly increases.

Oil prices continued their move higher after touching multiyear highs overnight as investors digested the impact renewed US sanctions on Iran would have on oil supplies.

In the global commodities markets, Brent for July 2018 settlement was up 53 cents at $77.74 a barrel. The contract jumped $2.36 a barrel or 3.15% to settle at $77.21 a barrel during the previous trading session.

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