Despite the weakness across most Asian markets, Indian indices have made a recovery after a weak opening. Both Sensex and Nifty have regained their early losses, helped by selective buying in frontline stocks.
The Sensex is trading flat at 10905 at 01.10 PM.
The Nifty is trading lower by 2 points at 3260.
Dr. Reddy's is holding on to its gains and continues to be the biggest gainer among index stocks. The stock is now trading nearly 6 per cent higher.
Among the other pharma stocks, Cipla is trading higher by 2 per cent. Ranbaxy and Glaxo are trading with modest gains of close to 0.5 per cent each.
Stocks of oil marketing companies have gained as crude oil prices have come down this week. HPCL has added over 2.5 per cent while BPCL has gained close to 1.5 per cent. Indian Oil has added close to a per cent.
Zee Tele has given up part of its early gains and is now trading with gains of 1.5 per cent.
MTNL has also declined from its morning highs and is now trading higher by close to 1.5 per cent.
BHEL, SCI and Satyam Computers are among the other major gainers.
Dabur has declined further in early afternoon trades and is the biggest loser among index stocks. The stock is now trading nearly 2.5 per cent lower.
Jet Airways has lost 2 per cent even after reports that the managements of Jet and Sahara are meeting tomorrow to discuss the merger.
Gail is still trading lower by close to 2 per cent. Hero Honda has also lost close to 2 per cent while Bajaj Auto has recovered from its weak opening and is now trading with modest gains.
Aluminium stocks Hindalco and Nalco have lost close to 1.5 per cent each while SAIL has recovered from the early lows and is now trading more than 1.5 per cent lower. Tata Steel has bucked the trend and is trading nearly a per cent higher.
L&T, ACC and TCS are among the other losers.
Mid-caps continue to be weak as the recovery in large caps in early afternoon trades have not helped the smaller stocks. The mid-cap index is now trading lower by nearly 0.3 per cent.
Noida Toll, Lyka Labs and Lanxess ABS are among the major gainers in mid-caps.
Mangalam Timber, Gujarat Fluorochemicals and RNRL are among the mid-cap losers.