Market breadth turns healthy after March as Covid-19 cases decline globally

In simpler terms, each day of April, on an average, there have been two stocks that close with gains for every one stock that ends with losses

The market has seen a 180-degree turn in sentiment if the advance-decline ratio is anything to go by. This key gauge for market breadth has improved from 0.7 times in March to nearly 2 times, so far this month. The high reading indicates that stocks across the board have seen buying interests after dropping to multi-year lows. 

Investor appetite for risk assets globally has seen a quick and dramatic improvement, underpinned by trillions of dollars worth of rescue packages unveiled by central banks. Also, a slowdown in the number of new Covid-19 cases in key geographies has aided this turnaround.

In simpler