Advance-decline ratio remains below 1 for second month in a row

The advance decline ratio (ADR) for May was 0.84, with 1,718 stocks advancing and 2,037 declining

The advance-decline ratio (ADR) for stocks traded on the BSE has remained below 1 for the second straight month until June 10.

If the market trend fails to improve, this will be the first time since March 2020 when ADR has remained below 1 for two successive months.

ADR gives an indication of market breadth. An ADR less than 1 indicates more stocks have fallen than those that have gained during the month.

So far this month, ADR is 0.93, with 1,777 stocks advancing and 1,912 declining, reveals the data by BSE.

The ADR for May was 0.84, with 1,718 stocks advancing and 2,037 declining.

Since April 2020, this is only the fifth month when ADR has been below 1.

Strong retail flows through direct investing have underpinned positive market breadth subsequent to the pandemic, say market experts.

A drop in ADR is also an indication that retail interest could be waning, they add.