Benchmark indices are trading in a tight range with negative bias weighed down by metal and oil shares. However, the downside has been limited due to buying among IT and few index heavyweight shares.
At 10:20, the Sensex was lower by 30 points at 28,474 and the Nifty dipped 8 points at 8,640.
However, the broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices are down over 0.5% each. Market breadth is negative with 1,184 declines and 747 advances on the BSE.
“The market is likely to trade sideways to negative. Minor recovery can be expected by noon. For the Sensex resistance is seen at 28,664 above 28,712 and 28,751. Support is at 28,448 below 28,312 and more. For the Nifty resistance is seen at 8665 above 8,673, 8,714 and 8,754. Support is at 8626 below 8,600 and more,” Geojit BNP Paribas Financial Services said in a technical note.
Traders will keenly watch the release of wholesale price inflation data for February today, rupee movement against dollar, investment by foreign portfolio investors, US FOMC meet announcement and US jobless claims, along with broad global trends and developments in the on-going Budget session of Parliament, in the coming week.
Investors will also keenly await the fourth and final installment of advance tax payment figures that would throw light on fourth quarter earnings.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 66.98 crore on Friday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 71.55 crore on Friday, as per provisional data.
Japanese stocks edged up to hit a 15-year high on Monday, with financial and real estate companies leading the gains, as investors bet on steady improvement in the Japanese economy and increased shareholder returns.
The Nikkei share average rose 0.3% to 19,309.23, hitting a 15-year intraday high at one point and extending its gain so far this year to almost 11%, outpacing many other markets.
Growth in China’s fiscal revenue cooled to its slowest in at least a year between January and February as China’s foundering economy dampened tax collection and other key sources of government income.
Fiscal revenue rose 3.2% to 2.57 trillion yuan ($ 410.5 billion) in the first two months of the year, data from the Finance Ministry showed on Monday.
LEADERS & LAGGARDS
BSE Metal, Oil & Gas and Power indices are down 0.7-1.1%. However, BSE IT index has gained nearly 1%.
State Bank of India has gained 0.5% after the bank said that the Executive Committee of Central Board (EGOS) of the Bank, in its meeting held on March 13, 2015, has accorded its approval to fix the issue price at Rs 295.59 per share of face value of Re.1/-, including a premium of Rs 294.59 per share, and accordingly, to issue 10,04,77,012 equity shares, ranking pari-passu with the existing equity shares of the bank in all respects, on preferential basis to GoI, for a consideration of Rs. 2970 crore.
DLF has surged nearly 3% after the company said that the Hon’ble Securities Apellate Tribunal has on March 13, quashed the Order dated October 10, 2014 passed by SEBI which had debarred the realty major from accessing the capital market for a period of three years.
Further, according to reports an audit commitee has deferred the conversion of preferential shares due on March 19, 2015 by one year and also reduced the coupon rate on convertible preferential shares to .01% from 9%. A foreign brokerage has upgraded the stocks as the reduction in coupon rate will result in savings of Rs 144 crore in interest costs for the debt ridden company during 2015-16.
IT stocks are trading firm with Wipro being the top Sensex gainer, up over 1%. TCS and Infosys have gained nearly 1%.
Wipro Infotech is planning to launch business process outsourcing (BPO) services in India with a focus on transaction processing.
Other notable gainers are HUL, Tata Motors, Dr Reddy’s Labs, HDFC Bank and Sun Pharma.
On the losing side, Sesa Sterlite, NTPC, HDFC, Cipla and Hindalco have slumped between 1-3%.
Among other shares, Persistent Systems has dropped nearly 6% to Rs 763 on the National Stock Exchange (NSE) in early morning trade after the information technology (IT) company said that the revenue growth in dollar terms is expected to be muted in January-March 2015 quarter (Q4 FY15, due to a change in the business priorities of one of large customers in the product engineering segment.