Markets recover from day's lows

Markets recovered from the lows but was trading in the red.

The Sensex dropped to a low of 19,547 on weak cues from Asian markets. The index recovered somewhat and was down 54 points at 19,638.

The Nifty was down 17 points at 5,888.

Sentiments in India were already down after WPI Inflation surged to the highest in a year lat week.

"In the year 2011, with inflation refusing to go away and with the RBI all set to do whatever it takes to tame inflation, the tightness in the liquidity, with the enough international problems on the horizon, I think the equity markets in India are headed for the more sober returns. And we think that the Nifty level 5700-6700 should be the range in 2011", says Dilip Bhat, joint managing director, Prabhudas Lilladher.

Asian markets were trading on a soft note on renewed fears over sovereign debt in the euro zone. Hang Seng dipped 22 points to 23,664. Shanghai Composite slipped 0.4% to 2,827. Seoul Composite shed 0.7% at 2,072.

Markets will be looking at India Inc's earnings for direction. The corporate earnings season will be starting later this week.

Kotak Mahindra Bank is the top Nifty loser, followed by HDFC Bank and HDFC.  Larsen & Toubro was down 2.2% at Rs 1805.

BHEL, NTPC, Wipro and Jindal Steel were down 1% each.

Meanwhile, Reliance Infrastructure added 2.2% to Rs 820. HCL Tech, Infosys and Axis Bank were up over 1% each.

Hindustan Unilever, Sterlite and SBI were also in green.