Market breadth improves as stocks rebound, ADR set for highest in 12 months

Foreign portfolio investors (FPIs) have stepped up their selling of domestic equities in the past one week

The advance-decline ratio (ADR), a barometer for overall market sentiment, has improved sharply this month amid a broad-based recovery in stock prices from their lows in March.

If the momentum sustains, the ADR this month could be best in 12 months. Last month, ADR had worsened to 0.8 amid a rout in the smallcap space. With 2,453 stocks advancing and 1,851 declining so far this month, the ADR currently stands at 1.3, the best since April 2023. The ADR would have been even better if not for straight losses in the previous three trading sessions amid global headwinds such as