Markets flat in noon trades

IT, metal shares slip while autos gain

Markets traded on a flat note this afternoon with gains in auto and FMCG shares being offset by selling pressure in metal and IT stocks. BSE Sensex was flat at 18306. Nifty traded down 10 points at 5,563.

Asian shares rose on Monday, supported by hopes U.S. politicians can overcome an imminent fiscal crunch while the yen fell to a near seven-month low against the dollar on expectations a new government chosen in next month's election could pump large amounts of stimulus cash into the economy.

Meanwhile, rupee recovered by 12 paise to 55.04 against the US dollar in the late morning trade today on fresh selling of the American currency by banks amid persistent capital inflows into the equity market.

Broader markets underperformed. BSE mid and small-cap indices slipped 0.5-0.7% each.

Among sectoral indices, BSE auto index added 1% to 10,514. On the other hand, capital goods index slipped 0.7% at 10,562. Metal, consumer durables, healthcare and IT shares slipped half a per cent each.

Maruti SUzuki has surged 4.3% to Rs 1502  on hopes for rising sales this month as part of the festival season. Bharti Airtel is up 2.8%, followed by Mahindra & Mahindra, ITC and Hero MotoCorp. Meanwhile, Tata Power is down 2.6% at Rs 96.50. TCS is down 1.3% at Rs 1270. Metal shares - Sterlite, Tata Steel and Hindalco are down over 1% each.

Among individual stocks, Panacea Biotec jumped 2.6% to Rs 109 on BSE after the company entered into a strategic alliance with Kremers Urban Inc.

Three PSU OMCs fell by 0.14% to 1.05% after the oil ministry said that under-recovery on High Speed Diesel applicable for 2nd fortnight of November effective 16 November 2012 remains high.

BSE market breadth is negative. Out of 2,626 stocks traded 1,618 shares have declined while 901 shares have advanced in trades.