Markets soft ahead of Sep inflation data

Reliance, Axis Bank results watched

Markets continued to trade on a lacklustre note in late morning deals with continued weakness in banking shares ahead of September inflation data. BSE Sensex, after touching a low of 18597, is now down 50 points at 18625. Nifty is down 16 points at 5660.

In Asia, markets declined on growth concerns in the global ecenomy. Hang Seng and Shanghai Composite shed while Nikkei held on to marginal gains.

The rupee today weakened by 25 paise to 53.06 against the US dollar in early trade, extending previous losses at the Interbank Foreign Exchange due to increased demand for the American currency.

BSE bankex is down 0.6% at 13,003. Consumer durables, capital goods and IT indices have also shown some weakness. However, the healthcare index has added 0.5% at 7,613. Realty and oil & gas indices are marginally in the positive zone.

"Autos looks to be trading at upper end of the rally currently looking a bit streched. Maruti likely fo correct towards levels of 1320 in near term, while bajaj had got resistance and build up on 1800 CE options suggesting writers active at that strike. So traders should look to sell the rise on these stocks," said Navneet Daga, Derivative Analyst, KR Choksey Securities.

Among individual stocks, Maruti Suzuki has slipped 1.4% at Rs 1,352. Sterlite, Bharti Airtel, ICICI Bank and Tata Motors have shed 1% each in trades.

On the other hand, Cipla has added 1% at Rs 367. Hindalco, Bajaj Auto and Dr Reddy's are up 1% each.

Reliance Industries up 0.5% at Rs 823 ahead of its results later in the day. Meanwhile, RIL has cut capital investment on the main oil and gas fields in the KG-D6 block by $3 billion on the back of an unexpected drop in reserves in an area that was once India’s most prolific.

Among individual stocks, D B Realty has locked in upper circuit of 5% at Rs 98.75 for a second consecutive day after ace investor Rakesh Jhunjhunwala's firm acquired more than one million shares of the Mumbai-based real estate firm through open market transaction.

Electrosteel Castings surged 2.5% at Rs 23, thereby extending 2-day 12.25% rally triggered by the company reporting stellar Q2 results. Sanwaria Agro Oils has also jumped 3.3% on posting strong set of numbers.