Sensex hovers around 22,800; Sesa Sterlite falls 3%

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

At 12:55 PM, the 30-share Sensex was up 18 points at 22,783 after hitting a record intra-day high of 22,853 and the 50-share Nifty was up 1 points at 6,819 after hitting a record high of 6,838 so far.

The market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire on Wednesday, 23 April 2014.

Adds Devangshu Datta, market expert, “Range trading – don't enter index today. Unless index moves out from the range of 6800-6850”.

On the global front, extended weakness in Chinese shares, driven by worries over liquidity and earnings, put a brake on other Asian stock markets on Tuesday despite Wall Street stocks rallying into a fifth session.

Japan's Nikkei share average began the day with a small gain and eventually fell 0.4%. MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat, while trading not far from a six-month high hit earlier this month.

The China Enterprises Index of the leading offshore Chinese listings in Hong Kong fell 1% to its lowest in nearly four weeks. That subdued other Asian markets, forcing investors to look past the longest winning streak since October in the S&P 500 index.

Back home, foreign institutional investors (FIIs) bought shares worth a net Rs 212.85 crore on Monday, 21 April 2014, as per provisional data from the stock exchanges.

The rupee is trading at 60.68/69 after hitting 60.71, it’s lowest since March 24. The pair closed at 60.59/60 on Monday.

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

The main gainers on the Sensex at this hour include GAIL, L&T, ONGC, RIL, HDFC Bank, Coal India, Hero Moto and Tata Power, all gaining between 1-2.5%.

Index heavyweight Reliance Industries (RIL) has trimmed intraday gains after hitting 52-week high.

Oil and gas stocks have gained on renewed buying with shares of BPCL scaling record high and HPCL hitting 52-week high. Coal India gained reversed initial fall in volatile trade.

Metal and mining stocks are mostly lower ahead of provisional reading of HSBC Holdings Plc and Markit Economics Ltd.'s China manufacturing purchasing managers' index due tomorrow.

The main losers on the Sensex are Sesa Sterlite, Hindalco, Wipro, ITC and Maruti Suzuki.

Among other shares, Gujarat Gas Company has dipped over 5% to Rs 388 on profit booking after its board approved the amalgamation and arrangement between group companies.

Novartis India has surged 16% to Rs 541 on back of heavy volumes media reports that Eli Lilly and Company proposed to acquire Novartis' animal health business.

Glenmark Pharmaceuticals has dipped nearly 3% at Rs 562 after the company said it has lost its appeal to invalidate Abbott Laboratories' TARKA (trandolapril/verapamil hydrochloride) patent.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.3-0.5%.

The market breadth in BSE remains positive with 1,394 shares advancing and 1,139 shares declining.