Markets continue to trade flat

The Indian markets are trading on a flat note with the BSE Sensex at 16,178, up 13 points and the Nifty at 4,854, up 4 points.

Overnight, the US stocks climbed to a five-month high. The Dow Jones industrial average gained 69.78 points, or 0.56 per cent, to 12,462.47. The Standard & Poor's 500 Index rose 11.38 points, or 0.89 per cent, to 1,292.08.

On the domestic front, the government formally eliminated restrictions on foreign direct investment in its single-brand retail sector. The move would change the retail landscape and boost investor sentiment, analysts say.

Back home, the Nifty convincingly broke the 4,800-barrier on Tuesday and closed on a firm note at 4,850, up 2.3 per cent. The next hurdle for the index lies at 4,880, above which the bulls could look to tighten their grip, analysts say.

On the sectoral front, BSE Metal, Consumer Durables, Realty and Bankex indices have advanced nearly 1% each.

Hindalco Industries, Sterlite Industries, Sesa Goa and SAIL, up 1-3% each, are theprominent gainers from the Metals' space.

Blue Star, Titan Industries and VIP Industries, are the gainers from among the Consumer Durable stocks.

IT and Capital Goods indices are trading marginally down.

Hindalco Industries has gained 3% at Rs 126 and is the most notable gainer on the Sensex. Other prominent gainers are Sterlite Industries, ICICI Bank, DLF and Tata Motors, up 1-2% each.

Shares of companies engaged in retail business have rallied on the bourses after the government notified 100% foreign direct investment (FDI) in single-brand retail. Pantaloon Retail, Shoppers Stop, Trent, Crew B.O.S Products, Brandhouse Retails, Provogue (India), Arvind, Vishal Retail and Koutons Retail are trading higher by 5%-12% on the Bombay Stock Exchange (BSE).

The losers from the pack are BHEL, Mahindra & Mahindra, ITC, HDFC Bank and Bharti Airtel, down 1-2% each.

The overall market breadth is positive as 927 stocks have advanced against 421 declining ones, on the BSE.