Indices started on a positive note as many frontline stocks recovered from the previous week's losses. However, losses in Reliance Industries and select telecom and technology stocks have forced the indices to shed all their gains. Other Asian markets are mostly weak in morning trades.

Sensex opened at 13685 and saw a high of 13723 before losing all the gains. The index is trading higher by 4 points at 13636 at 11.10 AM.

Nifty opened at 3939 and saw a high of 3958 before slipping. The index is now trading absolutely flat at 3939.

Metal stocks are doing well in early trades. SAIL has rallied close to 3 per cent while Tata Steel is trading 2.5 per cent higher. Nalco has added over 2 per cent.

ITC has bounced back from last week's decline and is the best performer among index stocks with gains of nearly 3 per cent.

Cement stocks have also bounced back from last week's heavy losses. ACC has added nearly 2.5 per cent and Gujarat Ambuja is trading 2 per cent higher.

Satyam is leading the tech pack with gains of over 2.5 per cent while HCL Tech is up over 2 per cent.

PNB is the best performer among banks with gains of over 2.5 per cent.

Dr. Reddy is the other major gainer trading nearly 2 per cent higher.

Reliance Industries has slipped more than 1.5 per cent as the news of a large preferential issue to promoters has failed to excite traders

Reliance Communications is continuing the down trend and has lost nearly 3 per cent. Bharti has lost well over 0.5 per cent.

Infosys has lost over a per cent and is the worst performer among tech stocks.

Among autos, M&M has lost close to 1.5 per cent and Maruti is down nearly a per cent. Hero Honda has lost another per cent.

Jet Airways is showing no signs of a recovery and has lost over 1.5 per cent.

BHEL is the worst performer among engineering stocks with losses of over a per cent.

Zee Entertainment is the other loser, down more than 0.5 per cent.

Mid-caps and small caps have recovered from last week's losses and are doing much better than large caps. The NSE mid-cap index is now trading with gains of 0.7 per cent. BSE mid-cap index has gained 0.4 per cent and the BSE small-cap index is trading with marginal gains of less than 0.05 per cent. Market breadth on the NSE is positive in early trades.

C and C Construction got listed today. Issued at Rs291 per share, the stock opened at Rs288 on the NSE and slumped to a low of Rs244. The stock is now trading at Rs248 per share.

Transwarranty Finance, another new listing today, is faring relatively better. Issued at Rs52 per share, the stock opened at Rs56 on the NSE and touched a high of Rs60.9. The stock is now trading at Rs53.6 per share.

Alchemist is continuing the rally today as well and has added nearly 14 per cent.

Siyaram Silk, Indo-Asian, Rane Madras, Uniphos, Binani Industries, Sterlite Opticals, Elgi Tyre and Zensar Technologies are the other major mid-cap gainers.

AI Champdany, Classic Diamonds, Autoline Industries, Crew BOS and Atlanta Limited are locked in 10 per cent down circuits.

Atlanta, Alps Industries, Crew BOS and KEI Industries are also locked in 10 per cent down circuits.

Soma Textiles, Enkei and Polyplex are among the major mid-cap losers.