Nifty hovers around 8,575; broader markets underperform

Benchmark indices are trading in a narrow range with Sensex and Nifty making swings between negative and positive zone.

By 10:28, the Sensex was higher by 47 points at 28,308 and the Nifty inched up 6 points at 8,579.

"Market is likely to trade sideways to negative. Selective buying by noon can be expected. For the Sensex resistance is seen at 28,379 above 28,475 and 28,864. Support is at 28,163 below 28,087. For the Nifty resistance is seen at 8,604 above 8,666 and 8,794.  Support is at 8,553 below 8,537 and 8,511," Geojit BNP Paribas Financial Services said in a technical note.

However, the broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices have slipped between 0.4-0.6%.

Market breadth is negative with 1,251 declines and 815 advances on the BSE.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 354.59 crore on Friday, 20 March 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 219.20 crore on Friday, 20 March 2015, as per provisional data.

In the currency front, the rupee is trading at 62.31 per dollar vs previous close of 62.47.

ASIAN MARKETS

Asian shares started the week on a strong note on Monday after a weaker U.S. dollar helped fuel solid gains on Wall Street.

The greenback took back a bit of lost ground in Asian trading, with the dollar index edging up about 0.1% to 98.024, moving well away from last week's low of 96.628.

MSCI's broadest index of Asia-Pacific shares outside Japan added about 0.4%.

SECTORS & STOCKS

BSE Metal, Consumer Durables and Realty indices are down almost 1% each. However, BSE Healthcare, Oil & Gas and Power indices are up 0.3-1%.

The main gainers on the Sensex are Bharti Airtel, Sun Pharma, NTPC, Hindalco and Dr Reddy’s Labs.

Telecom major Bharti Airtel has announced partnership with Amazon Web Services to offer its cloud computing services to customers in India.

On the losing side, Coal India, BHEL, SBI, Maruti Suzuki and ITC have slipped between 0.5-1.1%.

Shares of Jindal Steel and Power Limited (JSPL) have dipped over 9% on the BSE in early morning trade on media reports that the government has cancelled the two bids of the company for three blocks (Gare Palma IV/2, IV/3 and Tara).

Granules India has surged 6% to Rs 91.30 on the BSE in otherwise subdued market after the stock was quoted ex-stock split in the ratio of 10:1 today.

Public sector undertaking Rural Electrification Corporation Limited (REC) has signed a memorandum of understanding with the Telangana State Generation Corporation (Genco) to provide a funding of Rs 24,000 crore for the latter's power projects. The stock is down over 0.5%.