Market breadth turns negative from positive

Volatility continued as the key benchmark indices extended fall and hit intraday low in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 82.34 points or 0.23% at 35,607.26. The Nifty 50 index was down 26.75 points or 0.25% at 10,795.10. Auto stocks declined.

Domestic stocks edged lower in early trade on negative Asian stocks. Stocks turned volatile in morning trade as the key benchmark indices once again dipped in negative zone after briefly turning positive.

The S&P BSE Mid-Cap index was off 0.05%. The S&P BSE Small-Cap index was off 0.11%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. On the BSE, 941 shares rose and 1240 shares fell. A total of 123 shares were unchanged.

Auto stocks declined. Tata Motors (down 3.68%), Maruti Suzuki India (down 0.92%), Mahindra & Mahindra (M&M) (down 0.26%), Escorts (down 1.31%), Bajaj Auto (down 0.23%), Hero MotoCorp (down 1.74%) and Ashok Leyland (down 2.12%) dropped. Eicher Motors (up 0.33%) and TVS Motor Company (up 1.34%) rose.

Wheels India fell 1.87%. Wheels India announced that its board recommended bonus issue of equity shares in the ratio of 1 equity share of Rs 10 each for every 1 equity share of Rs 10 each held by the shareholders of the company as on the record date, subject to the approval of the shareholders. The company has fixed 9 August 2018 as the record date for the bonus issue. The announcement was made after market hours on Friday, 22 June 2018.

Overseas, Asian stocks fell as investors assessed prospects for continuing trade tensions between US and China. China's central bank will cut the amount of cash some lenders must hold as reserves, unlocking about 700 billion yuan ($108 billion) of liquidity, as it seeks to control leverage and support smaller companies. The required reserve ratio for some banks will drop by 0.5 percentage point, effective 5 July 2018, the People's Bank of China said. That's the day before the US and China are scheduled to impose tariffs on each other.

US stocks climbed on Friday, 22 June 2018 following gains in Europe as OPEC's plans to boost output less than some investors had anticipated sent oil on a tear.

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