Sensex hovers around 20,700, NTPC down over 10%

Benchmark indices continue to remain volatile in a narrow range with Sensex and Nifty swinging between negative and positive zone.

By 10:30, the Sensex was lower by 3 points at 20,698 mark and the Nifty slipped by 5 points at 6,151 levels.

Adds Kunal Bothra, Technical Analyst, LKP Securities, “The key level to watch on Nifty is 6120 as support and 6188 as resistance from an intraday perspective. I think, since sectors such as Capital Goods are showing good strength today. If couple of other frontline sectors provides some momentum today, then the market could build further on Friday's momentum.”

On the global front, Asian stocks dropped and the dollar firmed on Monday, as investors looked past the Group of 20's latest commitment to spur faster global growth and turned their focus back to the impact of the US Federal Reserve's stimulus withdrawal.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.6%, while Japan's Nikkei stock average added 0.1%, paring earlier gains.

Back home, foreign institutional investors (FIIs) bought shares worth a net Rs 603.41 crore on Friday, 21 February 2014, as per provisional data from the stock exchanges.

Investors and traders will keenly track the trends in rollover of January derivative contracts to February for cues on near-term trends. The F&O segment expiry session will be held on Wednesday this month, as markets would remain closed on Thursday for Mahashivratri.

Cautious sentiment will remain ahead of the December quarter gross domestic product (GDP) reading on Friday, which will be closely watched by the market to gauge whether the decline in economic growth has stemmed.

The rupee fell marginally by 3 paise to 62.15 against the US dollar in early trade today at the Interbank Foreign Exchange market due to increased demand for the US currency from importers.

On the sectoral front, BSE Power, Consumer Durables and IT indices have plunged by nearly 1% each followed by counters like Banks, Oil & Gas and Metal, all falling marginally. However, sectors like Capital Goods and Healthcare indices have gained between 1-2%.

The main losers on the Sensex at this hour include NTPC, TCS, Tata Steel, HDFC, HDFC Bank, SBI, Maruti Suzuki and RIL. NTPC has slipped by over 10%.

On the gaining side, capital goods majors like L&T and BHEL have gained by over 2%. Capital Goods stocks are in focus as investors look for value-buys in these weak sectors in the run-up to the elections.

Shares of Tata Power and Adani Power are trading higher by up to 7% after the Central Electricity Regulatory Commission (CERC) has decided the methodology for determination of compensatory tariff for Mundra power projects.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices 0.1-0.3%.

Among other shares, Credit Analysis and Research (CARE) has plunged nearly 10% to Rs 776 after the IDBI rejected the bids received from the potential investors as they were not found 'acceptable'.

ICRA is locked in upper circuit of 20% at Rs 1,913 on the BSE after the promoter’s made a conditional open offer to buy at least 2.15 million shares at Rs 2,000 per share to increase their stake in the company to 55% from 28.5%.

The market breadth in BSE remains positive with 953 shares advancing and 729 shares declining.