Markets languish in noon trades

Metal shares decline, RIL holds gains

Markets continued to trade on a soft note in afternoon trades, with the Sensex dropping 52 points to 18,642. Nifty is down 15 points at 5,659.

Meanwhile, the rupee recovered marginally after initial losses today but was still trading down 19 paise at 53.55 a dollar on persistent demand for the American currency from banks and its strengthening in the overseas forex markets.

In Asia, Nikkei has slumped 2% to 806 as many firms started to trade without rights to latest dividend payouts, while global growth fears hit resource shares across the region. Hang Seng and Shanghai Composite have dropped around 1% each.

However, broader markers outperformed the benchmark indices. BSE mid-cap index has added 0.5% to 6,515. Small cap index is up 0.7% at 6,953.

From the sectoral pack, BSE metal index has slipped 0.8% at 10,472 on weakness in the London Metal Exchange. Capital goods, bankex, power and PSU indices are also in red. Meanwhile, BSE FMCG index has added 1.1% at 5,373. Healthcare and Oil & gas stocks are also marginally in the positive zone.

HDFC bank is the top dragger, accounting for a 23 point fall on the Sensex. Bharti Airtel has slipped 3.6% at Rs 266. Coal India, Hindalco, BHEL and Tata Motors are some of the other losers in the Sensex right now.

On the other hand, Cipla has gained 2.6% at Rs 373. Gail India, HUL and ITC have added 1% each. Market heavyweight - Reliance is up 0.5% at Rs 845.

Shares of Gujarat Gas Company were up over 4% at Rs 310 after the company late Tuesday annouced an interim dividend for the current financial year.

The Leela Palaces Hotels and Resorts today said it plans to add up to 1,500 rooms in the next five years, taking the total to 3,500. Based on estimated average cost of a room, the investments would work out to be in the region of Rs 1,500 crore. Shares of Hotel Leela Ventures is up 0.8% at Rs 29.75.

BSE market breadth is neutral. Out of 2,771 stocks traded, 1,378 shares have advanced while 1,272 shares have delcined in trades.