Sensex hovers around 22,000; market breadth weak

Benchmark indices are trading in a narrow range with negative bias prevailing. By 12:30 PM, the Sensex was lower by 24 points at 22,032 mark and the Nifty slipped by 3 points at 6,580 levels.

Adds Puneet Kinra, AVP Research ( Equity Technical),Bonanza Portfolio , “Open interest is showing resistance at 6600 levels. On downside, Nifty is expecting support at 6500 levels. We may see Nifty expiry above 6500 levels.”

On the global front, Asian shares were in a defensive mode on Tuesday after Wall Street fell overnight and US short-term bond yields rose to six-month highs, though still-vague hopes of a new stimulus plan in China could improve investor sentiment.

Short-dated US Treasuries prices wobbled as investors grew nervous that the Federal Reserve may raise interest rates sooner than expected, following comments last week from Janet Yellen, the bank's new chief.

Japan's Nikkei dropped 0.4% while MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1465.62 crore on Monday  as per provisional data from the stock exchanges.

The rupee strengthened to its highest level in more than seven months on Tuesday, tracking broad global losses in the dollar and as foreign investors continued to buy into record-setting rally in domestic shares this month.

On the sectoral front, BSE Oil & Gas index has declined by nearly 2%. However, BSE Capital Goods, Power and Consumer Durables indices have gained by nearly 1% each.

Shares of oil and gas companies like Reliance Industries (RIL), Oil and Natural Gas Corporation (ONGC) and Oil India are trading lower by up to 4% in early morning deals on the BSE after the Election Commission (EC) has ordered deferment of an increase in gas prices that was to take effect from April 1, 2014.

Other notable losers are Wipro, Sun Pharma, Bharti Airtel, M&M, Sesa Sterlite and Cipla.

Among other shares, Bharti Infratel has dipped 5% to Rs 188 on back of heavy volumes.

Shares of Capital First has surged 17% to Rs 183, also its 52-week high on the Bombay Stock Exchange (BSE), on back of heavy volumes.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.2-0.4%.

The market breadth in BSE remains weak with 1,435 shares declining and 1,062 shares advancing.