Indices opened on a modestly weak note, recovered but declined again. They have moved back into positive territory once again and are trading with modest gains.

Sensex opened at 12875 and saw a high of 12921. The index is trading higher by 25 points at 12909 at 11.10 AM.

Nifty opened at 3715 and touched a high of 3727. The index is now trading higher by 5 points at 3720.

SAIL is continuing the rally and is the best performer among index stocks, trading nearly 2.5 per cent higher.

Oil marketing stocks BPCL and HPCL have gained around a per cent each after yesterday's correction. Gail India has also recovered more than a per cent.

ICICI Bank has picked up strength in anticipation of good numbers and has added more than a per cent. SBI has also added close to a per cent

HCL Tech is continuing the rally from yesterday and has added another per cent.

Hero Honda, Reliance Communications and Tata Motors are the other major gainers.

HDFC Bank is continuing the downtrend from yesterday and has lost another 2.5 per cent. HDFC is also finding no support and is trading more than 2 per cent lower.

IPCL, which announced at par results, is the worst performer with losses of nearly 3 per cent.

Tech stocks have come under pressure in early trades. Wipro, which announced better than expected results, has lost more than a per cent. Satyam, which has not announced results, has lost a per cent and TCS is also down nearly a per cent.

Jet Airways has lost nearly a per cent after a pathetic performance for the second quarter.

ONGC has slipped nearly 1.5 per cent after the recent gains.

BHEL and Bharti are the other major losers.

Mid-caps and small caps are doing better than large caps after underperforming for the last two sessions. Though there is no clear buying momentum, many stocks have recovered modestly from the losses of previous two sessions.

The NSE mid-cap index is now trading with gains of over 0.35 per cent. BSE mid-cap index has gained over 0.25 per cent and the small-cap index is trading with gains of over 0.4 per cent. Market breadth on the NSE is positive in early trades with nearly 1.5 stocks advancing for every declining stock.

Glenmark Pharma, which announced a licensing deal worth over Rs1,000 crore with Merck for a diabetes drug being developed by Glenmark, is the best performer among mid-caps with gains of over 15 per cent.

Godavari Fertilisers, Sandesh, Zenith Exports, Khaitan Electricals, Kirloskar Oil, SICAL, Ramkrishna Forge and Chemfab Alkalies are among the major mid-cap gainers.

Aztec Software has corrected after rallying for two sessions and is down more than 6 per cent.

Lumax Auto, Quintegra, Provogue, Kinetic Motors and Cinevistas are the major mid-cap losers.