After declining to their lows by mid-morning, the indices recovered as heavyweights like ONGC, Reliance Industries and SBI saw some buying interest.
By early afternoon, the frontline indices recovered all the losses from early trades and inched back into positive territory.
The Sensex is trading higher by 17 points at 10000 at 01.10 PM.
The Nifty is trading higher by 1 point at 2982.
MTNL has lost further ground and is now trading over 3.5 per cent lower.
Zee Tele has also not recovered from the early lows and is now trading nearly 3 per cent lower.
Metal stocks also continue to be weak, despite the recovery in the indices. SAIL has lost further ground and is trading nearly 3 per cent lower.
Hindalco has recovered partly from its early lows but is still lower by nearly 2 per cent. Nalco has recovered from its early lows but is still trading with losses.
HDFC Bank has lost ground and is now trading 2.5 per cent lower. ICICI Bank has also lost over a per cent.
Engineering stocks L&T and BHEL are still under pressure with losses of around 2 per cent each. ABB is trading lower by a per cent.
M&M, Gail, Dabur and BPCL are among the other losers.
HCL Infosystems continues to trade with losses of 29 per cent even after a clarification from the company that the fast-expanding market would help reduce revenue decline.
Dr Reddy's saw a sharp surge in mid-morning trades. After a subdued opening, the stock has now gained more than 4 per cent.
Cipla is still trading higher by 3 per cent. The company is one of the few manufacturers of a generic version of the anti bird-flu drug Tamiflu. There are reports of a possible bird-flu outbreak in the western parts of the country.
Tata Tea is still trading with gains of 1.5 per cent. ONGC has built on its early gains and is now trading more than a per cent higher.
Technology stocks Wipro and Satyam have gained ground. TCS is also trading higher.
Tata Power, HDFC, Jet Airways and Maruti are the other gainers.
Mid-caps are taking it on their chin today as stocks have lost substantial ground. The mid-cap index at one point was down nearly 2 per cent and is still more than 1.75 per cent lower.
Venkey's India, Winsome Yarn and KEC International are the major losers.
Jindal Drilling, Magma Leasing and Torrent Power are among the major gainers in mid-caps.