The Sensex is quoting at 16,684, lower by 35 points and the Nifty is at 4978, down nine points.
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(Updated at 1222 pm)
The markets have rebounded in the green, thanks to strength in Reliance Industries and gains in technology stocks.
The Sensex has recovered more than 100 points from its intra-day low of 16,622 and is now quoting at 16,727, higher by seven points, and the Nifty is just shy of the 5k mark at 4988, up one point. The consumer durables, energy and realty sectors are up. However, there is selling pressure in the consumer goods, FMCG and power space.
The index bellwether Reliance has registered gains of more than one per cent at Rs 1020. Buying interest around the psychological 1000 mark provided much needed support to the hitherto-beleaguered stock.
The shares of Reliance had slipped to Rs 990 in early trades on news that Sebi asked the government to consider appropriate action against the company for allegedly routing funds to dummy companies for buying large quantity of its shares in 2000.
And technology stocks are doing well in continuation with Nasdaq's outperformance on Friday. The US tech index had rallied more than one percent after the good earnings reported by Oracle and Research In Motion.
The leading gainers on the Sensex are Wipro (stronger by Rs 12 or 1.9% at Rs 687), TCS (higher by Rs 6 or 0.9% at Rs 734) and Reliance (up Rs 9 or 0.9% at Rs 1019).
Tata Steel, SBI and Tata Motors are the other prominent gainers.
Bharti Airtel is the top loser on the Sensex, having shed Rs 5 or 1.6% at Rs 311. Jaiprakash Associates has weakened by Rs 2 or 1.6% at Rs 144 and Hindalco had lost Rs 1 or 1.2% at Rs 141. BHEL and L&T are the other major losers.
The market breadth is strong. Out of 2,563 stocks traded on the BSE, there are 1,511 advancing stocks as against 972 declines.
