Market breadth turns negative from positive

A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, was trading with small gains while the 50-unit CNX Nifty was slightly lower. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 30.19 points or 0.11% at 27,501. The 50-unit CNX Nifty was off 3.35 points or 0.04% at 8,292.10.

The Sensex and the CNX Nifty, both, hit their highest level in 9-1/2 weeks at the onset of the trading session. The Sensex rose 147.33 points, or 0.53% at the day's high of 27,618.14 at the onset of the trading session, its highest level since 20 August 2015. The Nifty rose 40.85 points, or 0.49% at the day's high of 8,336.30 at the onset of the trading session, its highest level since 20 August 2015.

The market breadth indicating the overall health of the market turned negative from positive in morning trade. On BSE, 1,084 shares declined and 941 shares rose. A total of 75 shares were unchanged. The BSE Mid-Cap index was off 0.13%. The BSE Small-Cap index was off 0.19%. Both these indices underperformed the Sensex.

In overseas markets, Asian stocks were trading higher after China unexpectedly cut interest rates and lenders' reserve requirements on Friday, 23 October 2015 to support its ailing economy. The People's Bank of China cut the benchmark interest rate by 0.25 percentage points to 4.35%, and the reserve requirement ratio for commercial banks was cut by 0.5 percentage points to 17.5%. This is the sixth cut in the last 12 months. A tech share rally drove US stocks up sharply for a second day on Friday, 23 October 2015 as earnings from companies including Microsoft beat analysts' expectations, while healthcare shares rebounded from recent losses.

Capital goods stocks edged higher on renewed buying. ABB India (up 1.26%), Bharat Heavy Electricals (Bhel) (up 1.57%), Crompton Greaves (up 0.57%), L&T (up 0.84%) and Thermax (up 1.29%) gained. Bharat Electronics (down 1.08%), Siemens (down 0.21%) fell.

Fertiliser shares edged higher. Gujarat Narmada Valley Fertilizers & Chemicals (up 2.85%), National Fertilizers (up 1.48%), Coromandel International (up 0.16%), Rashtriya Chemicals and Fertilizers (up 1.98%), Chambal Fertilisers & Chemicals (up 1.87%), Gujarat State Fertilizers & Chemicals (up 8.21%) and Deepak Fertilisers & Petrochemicals Corporation (up 1%) gained.

Rallis India declined 3.81% after consolidated net profit fell 21.91% to Rs 57 crore on 21.38% decline in net sales to Rs 500 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 23 October 2015.

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