Market breadth turns positive from negative

Key benchmark indices continued to languish in the negative zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex was down 48.24 points or 0.16% at 30,910.01. The Nifty 50 index declined 7.25 points or 0.08% at 9,504.15. The Sensex failed to hold the psychological 31,000 level which it briefly surpassed in early trade.

Market sentiment was lackluster amid weakness in Asian stocks and lower closing on the Wall Street as policy uncertainty heightened in US with the Senate Republicans forced to delay vote on a crucial healthcare bill due to lack of support.

The S&P BSE Mid-Cap index rose 0.36%. The S&P BSE Small-Cap index advanced 0.21%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, turned positive from negative. On the BSE, 1,171 shares rose and 996 shares declined. A total of 114 shares were unchanged.

Auto stocks edged higher. Eicher Motors (up 1.43%), Maruti Suzuki India (up 1.04%), Ashok Leyland (up 0.77%), Tata Motors (up 0.44%) and Mahindra & Mahindra (up 0.09%) advanced. Bajaj Auto (down 0.02%) declined.

Hero MotoCorp was up 0.06%. The company said that Life Insurance Corporation of India (LIC) sold 2.026% stake in the company. The transaction took place between 1 October 2015 and 21 June 2017. Post transaction, LIC holds 5.136% stake in Hero MotoCorp, compared with 7.162% stake held earlier. The announcement was made after market hours yesterday, 27 June 2017.

IT stocks were mixed. Persistent Systems (up 2.23%), Tech Mahindra (up 2.06%) and HCL Technologies (up 0.63%) edged higher. Wipro (down 0.53%) and Infosys (down 0.31%) edged lower.

TCS was down 0.07%. The company announced that TMX Group awarded TCS, the implementation of a single, integrated technology platform for Canada's clearing and settlement businesses. The innovative platform, called TCS BaNCS for Market Infrastructure, will replace the legacy systems deployed by The Canadian Depository for Securities Limited (CDS) and Canadian Derivatives Clearing Corporation (CDCC), subject to regulatory approval where required. Technology integration across TMX Group's cash and derivatives clearing businesses is the next significant step in the company's evolution as a premier client-driven solutions provider to the Canadian and global capital markets. The announcement was made after market hours yesterday, 27 June 2017.

HPCL gained 1.69% after the company said that it is contemplating issue of senior, unsecured notes in the overseas market and will not be offered for sale in India. The announcement was made after market hours yesterday, 27 June 2017.

On 15 November 2016, HPCL's board of directors had approved the issue of secured/unsecured, redeemable non convertible bonds/debentures aggregating Rs 6000 crore from domestic as well as overseas market. The shareholders had approved the same on 6 January 2017.

The company has appointed intermediaries for organizing investor meetings for the probable foreign currency denominated bonds. The bond offering may follow subject to market conditions.

Pearl Global Industries fell 3.3% at Rs 159.95, with the stock sliding on profit booking after yesterday's rally. Shares of Pearl Global Industries had rallied 9.65% in the preceding one trading session to settle at Rs 165.40 yesterday, 27 June 2017, from its close of Rs 150.85 on 23 June 2017.

Overseas, Asian stocks edged lower after the softer lead from Wall Street, with the vote on a bill to replace Obamacare in the US delayed.

US equities closed lower yesterday, 27 June 2017 amid losses in large-cap technology stocks, while a Senate vote delay raised heightened policy uncertainty.

In US, the Republican Party's seven-year crusade to repeal the Affordable Care Act (ACA) is on the verge of collapse, after Senate leaders were forced to delay a vote on a healthcare bill. Republicans, who hold the Senate 52-48, must find at least 50 votes to pass the bill, under a budget rules process known as reconciliation that would require only a simple majority.

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