Lacklustre trades continue

Markets continued to trade sideways in late-morning trades with the Sensex gaining 23 points to 17,339. Nifty is flat at 5,279.

Among sectoral indices, the BSE metal index has slipped 0.7% at 11,380. Auto and Oil & gas indices have dropped marginally as well.

However, BSE IT index has maanged to hold on to gains - up 1% at 6,047. The declining rupee and a much awaited merger decision between Mahindra Satyam and Tech Mahindra has helped the index this morning.

The merger between Tech Mahindra and Mahindra Satyam was finally put to rest, after the boards of both companies at their respective meetings today approved a merger of Mahindra Satyam with Tech Mahindra along with wholly-owned subsidiaries of both companies.

As per the exchange ratio approved by the valuers and both the boards, shareholders of Mahindra Satyam will receive two equity shares of face value Rs 10 each of Tech Mahindra for 17 equity shares of face value Rs 2 each of Mahindra Satyam. The merger is effective from April 1, 2011.

TCS is the biggest gainer and accounts for a 20 points upmove in the Sensex. Infosys is up 0.6% while Wipro has slipped 0.5% at Rs 426.

Hindustan Unilever, BHEL, Coal India and HDFC Bank have added around 1% each. Meanwhile, Hindalco, Jindal Steel and Sterlite have shed 1-3% each. Keeping the metal stocks company are auto shares - Tata Motors and Maruti Suzuki - down around 2% each.

Meanwhile, sugar stocks have gained in otherwise subdued market, on hopes of additional two million tones export due to higher sugar production. The country's sugar production has increased by 14% to 21.16 million tonne till March 15 in the current marketing year that started October last year, according to data released by the Indian Sugar Mills Association (ISMA) on Monday.

Among the individual stocks, Dharani Sugars has surged 12%, followed by Thiru Arooran Sugars (up 7%), Upper Ganges Sugar and Industries (up 5%), Shree Renuka Sugars, Bajaj Hindustan and Balrampur Chini Mills are trading higher by 2% each on the Bombay Stock Exchange.

Elecon Engineering has surged 2% to Rs 58 on bagging an order worth Rs 17.60 crore for supplying three stackers and five reclaimers to Rajasthan-based Siddhi Vinayak Cement.

BSE market breadth is marginally positive. Out of 2,523 shares traded, 1,334 shares advanced while 1,074 shares declined.