Weak market breadth

Key equity benchmarks held firm in mid-afternoon trade on sustained buying demand in index pivotals. At 14:20 IST, the barometer index, the S&P BSE Sensex, was up 157.33 points or 0.45% at 35,063.44. The Nifty 50 index was up 46.45 points or 0.44% at 10,660.80. Most capital goods stocks edged lower. Realty stocks declined. Positive global stocks boosted sentiment.

The Sensex was currently trading above the psychological 35,000 level after moving above and below that level in intraday trade. Domestic stocks drifted higher in early trade on positive Asian stocks. The Sensex regained the psychological 35,000 level in opening trade. Key benchmark indices trimmed gains in morning trade. Volatility ruled the roost as stocks once again gained strength in mid-morning trade. Indices hit fresh intraday high in afternoon trade.

Trading could be volatile for the remaining part of the day's trading session as traders roll over positions in the F&O segment from the near month May 2018 series to June 2018 series. The May 2018 F&O contracts expire today, 31 May 2018.

On the domestic macro front, the government will announce data on first quarter gross domestic product (GDP) today, 31 May 2018. The Indian economy expanded 7.2% year-on-year in the last three months of 2017, from an upwardly revised 6.5% growth in the previous period.

Broader market depicted weakness. The S&P BSE Mid-Cap index was off 0.31%. The S&P BSE Small-Cap index was off 0.51%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 928 shares rose and 1642 shares fell. A total of 132 shares were unchanged.

Most capital goods stocks edged lower. BEML (down 1.88%), Bharat Electronics (down 3.19%), L&T (down 0.23%), ABB India (down 0.76%) and Siemens (down 1.88%) declined. Thermax (up 2.13%), Bharat Heavy Electricals (Bhel) (up 0.36%) and Punj Lloyd (up 12.38%) rose.

Realty stocks declined. Housing Development and Infrastructure (down 3.2%), Indiabulls Real Estate (down 0.8%), D B Realty (down 2.68%), Unitech (down 2.14%), Godrej Properties (down 1.76%), Prestige Estates Projects (down 2.43%) and Oberoi Realty (down 0.03%) declined. DLF (up 0.82%) and Sobha (up 0.37%) rose.

Atlanta hit a lower circuit limit of 20% at Rs 51.10 after Price Waterhouse Chartered Accountants LLP quit as auditor of the company. Price Waterhouse Chartered Accountants LLP, vide its letter dated 29 May 2018, has resigned from its position as the statutory auditors of Atlanta for FY 2017-2018 with immediate effect, Atlanta said in a statement. The announcement was made after market hours yesterday, 30 May 2018.

Overseas, most shares in Europe and Asia were trading higher as elevated concerns over Italy's deepening political crisis showed signs of abating.

US stocks rebounded yesterday, 30 May 2018, as investors judged the market reaction to Italy's political turmoil overwrought.

Global stocks were battered earlier in the week after Italy's two anti-establishment parties scrapped plans to form a coalition. That raised the prospect of a general election, stoking fears such a vote will effectively be a referendum on the country's euro membership.

A degree of calm, however, returned, with the two anti-establishment parties renewing efforts to form a coalition government rather than force Italy into holding elections for the second time this year.

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