Volatile markets at day's high

Markets have flip-flopped between the zones today on mixed cues from global peers. The Sensex after a firm start dropped into red. The index recovered for a short while only to erase all its gains and touch a low of 20,046. After changing directions at least seven times today, the BSE benchmark has now touched a high of 20,282 - up 94 points.

The Nifty is up 30 points at 6,101.

European stocks have dropped for the fourth straight day on debt worries. Asian markets also ended in red. Hang Seng dropped 1% to 24,027. The Chinese markets had crashed 5% on Friday. The Nikkei and Shanghai Composite on the other hand, added 1% each in trades.

BSE bankex has jumped 2% following the inflation data which was in-line with analyst's expectations. Government data showed that the inflation in October has risen 8.58%.

SBI and HDFC Bank have added 2.5% each to Rs 3,109 and Rs 2,377, respectively. ICICI Bank has added 2% to Rs 1,227.

Other gainers in the space include Fedeal Bank Yes Bank, Axis Bank and Indus Ind Bank.

However, most other sectoral indices has fallen in trades. BS realty index is down 2.6% at 3,403. Consumer durables, oil and metal stocks are trading in red.

Corporate earnings has shown the direction of trade for some stocks. Tata Steel has gained 1.3% at Rs 615 on reporting a turnaround in Q2 net profits.

Reliance Communications on the other hand has dropped 3% to Rs 165. The company reported 40% drop in consolidated net profit at Rs 445 crore.

IT firm, Mahindra Satyam will be announcing its quarterly numbers today. ABG Shipyard and Shree Renuka Sugars will also come out with their results.

Meanwhile, reports suggest that the government would be selling shares in state run firms like SCI and Manganese Ore by the end of this month.

Cipla and M&M have jumped nearly 3% each to Rs 340 and Rs 796, respectively.

Wipr, Bharti Airtel, Hero Honda, Infosys and TCS are also trading with 1% gains this afternoon.