New Delhi, March 5 (IANS): While the market is steady, the small cap index is showing some strain with a cut of 0.5 per cent on Monday, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Perhaps there is some selling happening in small caps in response to the SEBI advisory to mutual funds flagging concerns of excessive valuations, weakness in the small cap segment is likely to continue, he said.

The Chinese National People’s Congress which has begun will be keenly watched by the markets. Announcements relating to the initiation of growth stimulating reforms have the potential to attract big money into their stock market, which is now trading at cheap valuations. Therefore, it is important to watch out for developments in China, he added.

While there is fundamental support to the Indian stock market, high valuations can constrain further rally. The market is likely to remain range-bound in the near-term, he said.

Deepak Jasani, Head of Retail Research, HDFC Securities said gold surged as market participants solidified their bets that the Fed would begin cutting interest rates in June. Spot gold added 1.6 per cent to $2,116.77 an ounce.

Bitcoin rose to a more than two-year peak. The cryptocurrency was last up 8.1 per cent at $67,655, approaching an intraday record reached in November 2021. The S&P 500 saw its 16th weekly gain in the last 18 -- something that hasn’t happened since 1971, according to Deutsche Bank AG. If the gauge makes 17 out of 19 this week, it will be for the first time since the 1960s, the firm noted, he said.

Chinese stocks tumbled on Tuesday, dragging Asian peers with them, as investors showed their disappointment at Beijing's plans to support the economy as its week-long annual session of parliament, the National People's Congress, got underway, he added.

BSE Sensex is trading at 73,496.97, down 375.32 points or 0.51 per cent. IT stocks are down with TCS, Infosys, HCL Tech down more than 1 per cent.