Market breadth hits seven-month low despite Nifty, Sensex gains
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The stock market's advance-to-decline ratio fell to a seven-month low in October.
- ✓While Sensex and Nifty rose, the BSE MidCap 150 and BSE SmallCap 250 indices fell 3% and 4.2% this month.
- ✓Tejas Shah said these factors "made investors more selective, increasing selling pressure on fundamentally weaker, highly leveraged and overvalued companies."
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Synopsis
The advance-to-decline ratio in the stock market indicates underlying weakness, despite some index gains. The BSE MidCap 150 and BSE SmallCap 250 have both seen declines this month. Various factors such as profit-booking and high valuations contribute to this market trend. Institutional money is increasingly favoring larger companies with stable earnings. Overall market conditions remain uncertain due to external economic pressures and geopolitical risks.
Mumbai: The stock market's advance-to-decline ratio has fallen to a seven-month low in October, exposing the weakness beneath gains in benchmark indices.
While the Sensex and Nifty have risen 2.3% and 1.4% respectively, the BSE MidCap 150 and BSE SmallCap 250 indices have declined 3% and 4.2% respectively, through this month. This reverses the broader trend in favour of small- and mid-caps seen thus far this year, underscoring the recent divergence between frontline stocks and the broader market.
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The Economic Times
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