The Sensex is now down 10 points at 12,030.
Updated at 1249 hrs
The Sensex has recovered almost all its losses and is now down only 18 points at 12,022. The index had touched an intra-day low of 11,860.
Ranbaxy has soared 6.2% to Rs 503. HLL has surged 3% to Rs 284.
Tata Steel, which tumbled to a low of Rs 614, has rebounded sharply and is now up nearly 3% at Rs 661.
Maruti has rallied 3% to Rs 907, and Tata Motors has jumped over 1% to Rs 963.
Gujarat Ambuja, Larsen & Toubro and Reliance Energy are the other smart gainers.
Satyam has slumped 6.5% to Rs 816. Dr.Reddy's and Wipro have plunged 2.5% each to Rs 1,462 and Rs 542, respectively.
Reliance and Hindalco are down over 2% each at Rs 973 and Rs 211, respectively.
SBI has declined nearly 2% to Rs 919. NTPC has shed 1.6% to Rs 137, and ONGC is down over 1% at Rs 1,334.
Out of 2,513 stocks traded so far, 1,451 have declined, 990 have advanced and 72 are unchanged.