Market breadth turns negative from positive

After extending gains in early afternoon trade, key benchmark indices pared gains in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex, was up 97.08 points or 0.39% at 25,198.81. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 14.35 points or 0.19% at 7,720.90. The Sensex rose 193.82 points or 0.77% at the day's high of 25,295.55 in early afternoon trade, its highest level since 3 May 2016. The barometer index rose 61.21 points or 0.24% at the day's low of 25,162.94 in morning trade. The Nifty rose 45.05 points or 0.58% at the day's high of 7,751.60 in early afternoon trade, its highest level since 3 May 2016. The index rose 8.05 points or 0.1% at the day's low of 7,714.60 in morning trade.

The market breadth indicating the overall health of the market turned negative from positive in afternoon trade. On BSE, 1,193 shares fell and 1,143 shares rose. A total of 135 shares were unchanged. The BSE Mid-Cap index was currently down 0.17%. The BSE Small-Cap index was currently up 0.1%. Both these indices underperformed the Sensex.

In overseas stock markets, European stock markets edged higher, buoyed by some solid corporate earnings at the likes of BT. Asian stocks edged lower on data showing slowdown in growth in China's services sector last month. However, the data triggered speculation of likely stimulus for the economy, thereby aiding recovery in mainland China. The Shanghai Composite index ended 0.22% higher. In Hong Kong, the Hang Seng index was currently down 0.22%. The China Caixin services purchasing managers' index (PMI) dropped to 51.8 in April from 52.2 in March. China's official non-manufacturing PMI, a competing gauge, fell to 53.5 in April from 53.8 in March, according to data released on 1 May 2016. China's economy is the world's second biggest economy.

US stocks edged lower yesterday, 4 May 2016, after weaker-than-expected private-sector job data. The ADP employment data showed that private payrolls across the US rose by 156,000 last month. The increase is the smallest since April 2013. The report is seen as a precursor to the top-tier nonfarm-payrolls data due on Friday, 6 May 2016. The nonfarm-payrolls data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.

Most capital goods shares edged higher. Crompton Greaves (up 4.13%), Bharat Heavy Electricals (Bhel) (up 1.88%), Thermax (up 1.36%), ABB India (up 1.34%), Larsen & Toubro (up 1.16%), Lakshmi Machine Works (up 0.97%), Siemens (up 0.63%), Punj Lloyd (up 0.31%), Reliance Defence and Engineering (up 0.17%), Havells India (up 0.16%), ALSTOM India (up 0.10%), Bharat Electronics (up 0.02%) and BEML (down 0.15%), edged higher. AIA Engineering (down 0.24%), Alstom T&D India (down 0.61%), Praj Industries (down 0.88%), SKF India (down 1.19%) and Jindal Saw (down 1.74%), edged lower.

Most realty shares rose. Sobha (up 5.55%), DLF (up 4.07%), Housing Development and Infrastructure (HDIL) (up 2.57%), Anant Raj (up 2.13%), Oberoi Realty (up 2.12%), Parsvnath Developers (up 1.91%), D B Realty (up 1.85%), Peninsula Land (up 1.78%), Godrej Properties (up 0.48%) and Phoenix Mills (up 0.48%), edged higher. Sunteck Realty (down 0.24%), Unitech (down 0.44%), Mahindra Lifespace Developers (down 0.47%) and Prestige Estates Projects (down 3.1%), edged lower.

Indiabulls Housing Finance was up 1.56% at Rs 679.25 after a large bulk deal of 19.77 lakh shares was executed on the scrip at Rs 669.80 per share at 09:23 IST on BSE today, 5 May 2016.

Camlin Fine Sciences gained 1.71% after the company's subsidiary acquired 65% stake in DRESEN QUIMICA S.A.P.I.de C.V., Mexico (Dresen) along with its group companies. Dresen is engaged in manufacturing and distributing specialty intermediate chemical solutions used by the feed, food and other industrial products. Dresen sells its products directly to feed and food manufacturers, rendering plants, pet food manufacturers and to industrial customers. The entity has operations in five countries (Mexico, Guatemala, Peru, Colombia and Dominican Republic). Camlin Fine Sciences said that its justification for the acquisition is that Dresen has large products portfolio, having proper sales mix with relevant processes and equipments in operation besides adequate installed capacity for operations to support future growth. Its production facility is strategically located and utilizes proprietary processes and technology. It markets its products through its own sales force directed from its headquarters and its branches and a network of distributors in North, Central and South America. After the acquisition, Camlin Fine Sciences may expand its market reach in the North, Central and South America.

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