Benchmark indices posted gains for second consecutive session on Monday as the BSE Sensex closed at one-month high of 20,811.44 points. The 30-share Sensex gained 1.64% last week after the finance minister while unveiling the interim budget on February 17 said that the fiscal deficit for FY14 would be contained at 4.6% of GDP.
The BSE Sensex ended 110.69 points or 0.53% higher, while the NSE's Nifty closed 30.65 points or 0.50% higher at 6,186.10 points on Monday.
According to experts, the GDP data which will be out on Friday and investment trends of foreign institutional investors (FIIs) will have an impact on the markets in the near-term. "Concerns about slowdown in capital inflow may weigh on the domestic bourses after a Federal Reserve report this week showed support for a plan to reduce monetary stimulus for the US economy. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets over the past few years. On the macro front, the government will unveil data on gross domestic product (GDP) for December quarter on Friday. The GDP grew at improved pace of 4.8% in September quarter, from 4.4% growth recorded in June quarter," Standard Chartered said in a note.
FIIs have been net buyers in the last seven sessions, buying $420.74 million worth of equities. In the current calendar year, FIIs have bought $91.74 million worth of equities.
Among Asian indices, the Nikkei (-0.19%), KOSPI (-0.45%), Shanghai Composite (-1.75%) and Taiwan Taiex (-0.48%) ened in the red. Chinese shares were down amid reports that Chinese lenders have stopped extending loans to property developers.
Back home, among individual stocks, NTPC (-11.43%), Bharti Airtel (-1.84%) and Tata Steel (-1.26%) ended in the red. The NTPC scrip was down on the back of electricity regulator Central Electricity Regulatory Commission's (CERC) final regulations for 2014-2019, which were out on Saturday.
According to experts, the power producer NTPC is likely to be the worst hit. "We see the cut in incentives not only as a structural decline in regulated RoEs but a de-rating catalyst. NTPC would be worst hit due to across-the-board cut in its incentives," Bank of America Merrill Lynch analysts said in a report.