Weak market breadth

Key benchmark indices continued to trade with modest gains in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 79.58 points or 0.24% at 33,783.17. The Nifty 50 index was up 15.05 points or 0.15% at 10,375.45. Bargain hunting helped indices stage a comeback after prior three-day fall. Stocks from oil & gas and FMCG sectors saw mixed trend.

Trading for the day began on a positive note as domestic stocks logged modest gains in early trade. Stocks trimmed gains in morning trade. Indices hovered in positive zone in mid-morning trade. They once again pared gains and were trading with small gains in afternoon trade after regaining some strength in early afternoon trade. Key benchmark indices were trading with small gains in afternoon trade.

The S&P BSE Mid-Cap index was off 0.3%. The S&P BSE Small-Cap index was off 0.28%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,533 shares fell and 1,015 shares rose. A total of 137 shares were unchanged. Breadth was strong in early trade. It turned negative in morning trade. It weakened since afternoon trade.

Oil & gas stocks saw mixed trend. Among shares of oil exploration and production (E&P) companies ONGC (up 1.74%) rose. Oil India (down 4.25%) fell.

Reliance Industries (RIL) rose 0.66%. Eros International Media (Eros India) gained 6.63%. RIL and Eros International PLC (Eros) announced on 20 February 2018 that RIL, through a subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at a price of $15 per share, which represents an 18% premium to last closing price. The transaction is subject to customary regulatory and other approvals. The announcement was made after market hours yesterday, 20 February 2018.

Furthermore, RIL and Eros India announced that they have agreed to partner in India to jointly produce and consolidate content from across India. The parties will equally invest up to Rs 1000 crore in aggregate (approximately $150 million) to produce and acquire Indian films and digital originals across all languages.

Among PSU OMCs, BPCL (down 1.56%) and Indian Oil Corporation (down 0.75%) declined. HPCL (up 1.19%) advanced.

FMCG stocks saw mixed trend. Colgate-Palmolive (India) (up 1.52%), Britannia Industries (up 0.38%), GlaxoSmithkline Consumer Healthcare (up 0.16%), Godrej Consumer Products (up 0.61%), Nestle India (up 0.33%), Tata Global Beverages (up 2.03%) and Procter & Gamble Hygiene and Health Care (up 0.59%) gained.

Dabur India (down 2%), Hindustan Unilever (down 0.44%), Marico (down 0.96%), Jyothy Laboratories (down 1.26%) and Bajaj Corp (down 1.02%) fell.

Panacea Biotec advanced 3.01% to Rs 325, with the stock recovering on bargain hunting after recent slide. Shares of Panacea Biotec had slumped 10.18% in the previous three trading sessions to settle at Rs 315.50 yesterday, 20 February 2018, from its closing of Rs 351.25 on 15 February 2018.

Royal Orchid Hotels was up 1.12% after the hotel chain operator announced the opening of its new hotel named Regenta Resort Soma Vine Village at Nashik in Maharashtra. The announcement was made during market hours today, 21 February 2018.

Overseas, European stocks dipped lower at the start of trading ahead of the release of minutes from the US Federal Reserve's January meeting that could provide the first specific detail on interest rate hikes under new chairman Jerome Powell. Most Asian stocks rose in choppy trading. Markets in China remained closed for the Lunar New Year holiday and will reopen tomorrow, 22 February 2018.

Japanese manufacturing activity expanded at a slower pace in February as growth of new export orders slowed due to the yen's appreciation. The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 54 in February from a final 54.8 in January.

US stocks snapped a six-day winning streak yesterday, 20 February 2018 with the Dow and S&P 500 weighed down by a steep loss for Walmart as investors also watched climbing bond yields, which could make equities less attractive at current levels.

The US Federal Reserve will today, 21 February 2018 release minutes of its January 30-31 meeting, Janet Yellen's last as chair, where officials kept the rate unchanged.

Powered by Capital Market - Live News