Mkt riptide pulls ADR below 1, charting course of unease

FIFTH MONTH ADRIFT: Advance/decline ratio remains anchored in negative waters as Sensex, Nifty sail near a 15% gain

- SUNDAR SETHURAMAN

The advance/decline ratio (ADR) - a gauge of market breadth - has remained negative (below 1) for a second consecutive month. In other words, the number of stocks declining is outpacing those rising, as a brutal selloff by overseas investors and lofty valuations weigh on sentiment.

According to BSE data, the ADR for October stands at 0.98 for the second month in a row. This marks the fifth month this year that the gauge has fallen below 1, even as the benchmark S&P BSE Sensex and the National Stock Exchange Nifty have risen close to 15 per cent year-to-date.

The last time the ADR was negative for two consecutive months was in February and March.