Weak market breadth

Stocks gyrated in a small range with negative bias in early afternoon trade. At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 141.84 points or 0.42% at 33,992.54. The Nifty 50 index was down 51.60 points or 0.5% at 10,193.65. Pharma shares declined. Weak Asian stocks dampened sentiment on the domestic bourses.

The Sensex was currently trading below the psychological 34,000 level after gyrating above and below that level in intraday trade. Trading for the day began on a weak note as the key benchmark indices edged lower in early trade on negative Asian stocks. The Sensex dropped below the psychological 34,000 level in opening trade. Domestic bourses cut losses in morning trade, with the Sensex regaining the psychological 34,000 level. Key indices extended losses in mid-morning trade.

The S&P BSE Mid-Cap index was down 0.97%. The S&P BSE Small-Cap index was down 0.91%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 751 shares rose and 1553 shares fell. A total of 110 shares were unchanged.

Pharma shares declined. Cadila Healthcare (down 1.1%), Cipla (down 1.28%), Dr Reddy's Laboratories (down 1.46%), Glenmark Pharmaceuticals (up 1.31%), Lupin (down 1.18%), Sun Pharmaceutical Industries (down 2.64%), Alkem Laboratories (down 0.36%), GlaxoSmithKline Pharmaceuticals (down 3.6%), Aurobindo Pharma (down 0.33%) and Wockhardt (down 2.07%) fell.

Lakshmi Vilas Bank rose 9.49%. According to media report, five financial investors, including the Blackstone Group, Bain Capital and TPG Capital Management, have been shortlisted to buy a controlling stake in Lakshmi Vilas Bank. Baring Private Equity Asia and home-grown Gajja Capital are the two other contenders left in the penultimate round to acquire the 92-year-old, South-based bank, the report added.

Meanwhile, Lakshmi Vilas Bank clarified to the bourses during trading hours today, 23 October 2018, that there has been some speculation in the media about the bank's capital raising programme. The programme is progressing as per plan. The bank has received a number of expressions of interest, to participate in the programme, from high quality investors.

Overseas, Asian stocks were trading lower as rising tensions over Saudi Arabia's diplomatic isolation and Brexit talks dampened investor sentiment. US stocks closed mostly lower yesterday, 22 October 2018, with the S&P 500 dropping for a fourth day in a row, as investors braced for a deluge of earnings against the backdrop of higher interest rates and concerns about global growth.

Risks still abound across global markets, from the continuing US-China trade showdown to Italian budget fears and President Donald Trump's unpredictable actions ahead of American midterm elections.

Powered by Capital Market - Live News