The Sensex is now quoting at 16,398, down 30 points and the Nifty is at 4,907, lower by six points.

The markets have been sluggish in the past hour, with the Sensex down 36 points at 16,394 and the Nifty losing 11 points at 4,902. The energy and metal sectors are soft.

Reliance has declined 2% to Rs 1,010 on reports that it may sweeten its offer for LyondellBasell. Metal stocks are seeing a correction after the stellar returns of the previous day; Sterlite has shed 1.7% to Rs 774 and Tata Steel has dropped 1.4% to Rs 576.

Banking stocks, on the other hand, are doing well. HDFC Bank and ICICI Bank have added about a per cent each.

The market breadth is positive. Out of 2,590 stocks traded on the BSE, there are 1,193 advancing stocks as against 1,297 declines.