Market breadth turns negative from positive

Key benchmark indices extended losses and hit fresh intraday low in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 113.39 points or 0.42% at 26,650.07. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently down 27.70 points or 0.34% at 8,175.90. The Sensex and Nifty, both, hit their lowest level in more than one-week. Weakness in global stocks spoiled investors' sentiment.

The Sensex dropped 134.57 points or 0.5% at the day's low of 26,628.89 in mid-afternoon trade, its lowest level since 31 May 2016. The barometer index rose 208.60 points or 0.77% at the day's high of 26,972.06 in mid-morning trade. The Nifty fell 39.20 points or 0.47% at the day's low of 8,164.40 in mid-afternoon trade, its lowest level since 2 June 2016. The index rose 62 points or 0.75% at the day's high of 8,265.60 in mid-morning trade.

In overseas stock markets, Asian and European shares edged lower on concerns about global economic slowdown and concerns over the 23 June 2016 referendum that could see Britain exit the European Union. Earlier this week, the World Bank revised its global economic growth forecast for calendar year 2016 to 2.4% from the 2.9% projection in January.

The UK government holds a referendum on 23 June 2016 on whether the country should remain a member of the EU. The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU -- the so-called Brexit -- could send shocks through global financial markets. The OECD said on 1 June 2016 that a United Kingdom vote to leave the EU would trigger negative economic effects on the UK, other European countries and the rest of the world. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets, the OECD said. By 2030, post-Brexit UK GDP could be over 5% lower than if the country remained in the European Union, the OECD said.

US stocks dropped yesterday, 9 June 2016, after three days of gains as a decline in crude oil futures sapped risk appetite.

Closer home, the market breadth indicating the overall health of the market turned negative from positive in mid-afternoon trade. On BSE, 1,239 shares fell and 1,191 shares rose. A total of 164 shares were unchanged The BSE Mid-Cap index was currently down 0.2%. The BSE Small-Cap index was currently down 0.06%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

Most telecom stocks bucked weak market trend. Bharti Airtel (up 0.31%), Tata Teleservices (Maharashtra) (up 0.92%) and Reliance Communications (up 0.72%) gained. Idea Cellular fell 0.48%.

Shares of Bharti Infratel fell 0.98%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Most auto stocks declined in weak market. Ashok Leyland (down 1.54%), Maruti Suzuki India (down 0.13%), Eicher Motors (down 0.18%), Hero MotoCorp (down 0.57%), Tata Motors (down 1.91%), Bajaj Auto (down 0.5%) and TVS Motor Company (down 0.24%) declined. Mahindra & Mahindra (M&M) rose 0.46%.

The BSE Auto index had outperformed the market over the past one month till 9 June 2016, rising 5% compared with Sensex's 4.18% rise.

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