The Sensex has rebounded on the back of a positive opening in European markets. The index is up 65 points at 17,055. Nifty is up 22 points at 5,140.
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(Updated at 1144 hrs)
The markets switched to a recovery mode after having plunged deep in the opening trades. The BSE Sensex is down 163 points at 16,826 and the S&P CNX Nifty is at 5,074, down 44 points. Earlier in the day, the BSE benchmark index had touched a low of 16,432 while the Nifty had slipped below the 5000-mark for the first time since June 2010.
The broader markets are in line with the bourses. The mid-cap index and the small-cap indices too have recovered partially and are down around 1% and 1.5%, each, at 6,420 and 7,515, respectively.
The Asian markets, though recovering, are still underperforming compared to our markets. The Hang Seng index is at 19,632, down 4% and the Nikkei is down 2% at 8,885.
Energy major Reliance Industries has received approval from the government for selling stakes in 21 oil and gas blocks to British Petroleum for Rs 32,540 crore. The stock is now down 2% at Rs 767.
Among the Sensex 30 stocks, Mahindra & Mahindra, Bajaj Auto, DLF, ONGC and Maruti Suzuki are the top gainers, up 1-3%, each. On the other hand TCS, Sun Pharma, Wipro, Infosys and Tata Motors, are down 4% each.
The BSE Auto index has rebounded into the positive zone, and is now up 0.5% at 8,291. Mahindra & Mahindra and Bajaj Auto are leading from the front, up 3.5% and 2%, respectively. Bhart Forge and Exide are the other prominent gainers, while Tata Motors continues to languish in red.
The BSE IT index continues to be the major laggard at 5,012, down 4% as investors fear that the sector would be the worst affected if the west was to slip back into a recession. TCS is down 4.2%, Wipro is down 3.7% while Patni Computers and Infosys have shed 3% each.
Other draggers among the sectoral indices include BSE TECk, Healthcare and Capital goods, down 2% each.
The overall market breadth is extremely negative with 1,995 stocks declining as against 503 advancing ones on the BSE.