Markets continue to trade sideways

Metal, oil & gas shares slump

Markets are trading on a lacklustre note with weakness seen in metal and oil stocks. The Sensex is down 16 points at 18,668. Nifty is flat at 5,685.

The rupee failed to maintain earlier gains but was still higher by four paise at 54.71 against dollar in late morning trade today on uneven demand and supply of the American currency from banks, despite strong dollar overseas.

Meanwhile, industrial output declined by 0.4% in September as manufacturing activity showed a decline. This has doused hopes of a revival in the economy and may force the Reserve Bank of India (RBI) to review its policy rates earlier than the fourth quarter credit policy.

In Asia, Nikkei slipped almost a per cent at 8,676. Hang Seng and Shanghai Composite have advanced marginally in trades.

BSE metal index is down 0.7% at 10,061. Oil & gas, capital goods and auto indices are also in the red. However, Bankex has seen some buying interest and is up 0.8% at 13,290.

HDFC Bank and TCS are the top mover in the Sensex. Bharti Airtel - up 1% at Rs 279 is the top gainer. Among other stocks moving in the positive zone are SBI, ICICI Bank and Infosys.

On the other hand, Tata Steel has slipped 2% at Rs 383. Tata Power, Hero Motocorp, Reliance and GAIL India are down 1% each.

Among individual stocks, India Infoline Limited has received approval from the Securities and Exchange Board of India (Sebi) for launching its Alternative Investment Funds. Shares of IIFL are up 2% at Rs 69.

Four Soft has slumped 3% at Rs 9.67 on news that it has entered into an agreement with TL Logicom which is into transportation, warehousing, and real estate leasing services and a subsidiary of SBS Holdings, for the implementation of its web-centric solutions.

BSE market breadth is negative. Out of 2,623 stocks traded, 1,345 stocks have declined while 1,160 shares have advanced in trades so far.