Market breadth turns negative

Fresh selling once again pulled the key benchmark indices to negative zone in early afternoon trade. At 12:23 IST, the barometer index, the S&P BSE Sensex, was down 46.93 points or 0.13% at 35,552.89. The Nifty 50 index was down 7.15 points or 0.07% at 10,800.90. Power generation stocks declined. Capital goods stocks edged lower. Asian stocks saw mixed trend.

A bout of volatility was seen in early trade as the key benchmark indices reversed initial losses. Stocks alternately swung between positive and negative zone in a small range in morning trade. Key benchmark indices hovered in a small range with positive bias in mid-morning trade.

The S&P BSE Mid-Cap index was off 0.15%. The S&P BSE Small-Cap index was off 0.16%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On the BSE, 1096 shares rose and 1276 shares fell. A total of 137 shares were unchanged.

Power generation stocks declined. NTPC (down 1.48%), Reliance Infrastructure (down 1.07%), Tata Power Company (down 0.97%), CESC (down 0.51%), Torrent Power (down 2.02%), Reliance Power (down 2.15%), NHPC (down 0.77%), Jaiprakash Power Ventures (down 1.19%), Adani Power (down 1.83%), JSW Energy (down 0.14%) edged lower.

Capital goods stocks edged lower. ABB India (down 0.99%), Bharat Heavy Electricals (Bhel) (down 0.79%), BEML (down 0.37%), L&T (down 1.06%), Punj Lloyd (up 2.02%), Siemens (down 0.34%) and Thermax (down 1.77%) declined. Bharat Electronics (up 2.41%) rose.

Overseas, most Asian stocks were trading on a mixed note. The Bank of Japan meets today, 15 June 2018 with no change to policy expected. US stock-market indexes closed mostly higher yesterday, 14 June 2018 on gains by big technology and media companies, outweighing laggard financial and industrial shares.

Meanwhile, US President Donald Trump reportedly approved tariffs on about $50 billion of Chinese goods, as the US ratchets up its trade fight with Beijing over China's alleged pressure on US firms to transfer technology to Chinese partners. It wasn't clear when the tariffs would go into effect.

In Europe, the European Central Bank (ECB) said it would phase out some of its easy-money policies on the back of an improving economic picture in Europe. On interest rates, the ECB said rates will remain at their present all-time lows at least through the summer of 2019.

The ECB said it would continue its program of buying 30 billion euros a month of bonds through September, as planned. The purchase amount will then be reduced in October to 15 billion euros a month and run through the end of December. The purchases will end in December.

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