After the mid-morning recovery, which saw the frontline indices clawing back close to yesterday's closing levels, markets slipped once again before noon. The Sensex slipped more than 200 points after HLL announced results that were not up to market expectations.
Most Asian markets are weak, with some indices losing more than 2 per cent, which has affected the sentiment further.
The Sensex is trading lower by 154 points at 11683 at 01.10 PM.
The Nifty is trading lower by 51 points at 3457.
Metal stocks continue to be the worst hit. SAIL has lost further and is trading more than 5 per cent lower. Tata Steel continues to trade with losses of more than 2.5 per cent.
Among aluminium stocks, Nalco has given up more than 4 per cent while Hindalco has lost over 3.5 per cent
HLL disappointed with its results and the stock, which was trading firm in mid-morning trades, declined more than 4 per cent. The stock has recovered marginally and is now trading more than 3.5 per cent.
Telecom stocks VSNL and MTNL have given up more than 3 per cent each. Reliance Communication has also been under pressure from morning.
Cipla, Wipro and Grasim are the other major losers among index stocks.
Zee Tele, which announced part of its restructuring plan yesterday, has surged in early afternoon trades. The stock has now gained over 5.5 per cent.
Dabur continues to be the biggest gainer among index stocks and is trading nearly 6 per cent higher.
Bharti rallied for after it announced steady results, declined and has picked up again. The stock is now trading more than a per cent higher.
ACC, HPCL, HDFC and HCL Technologies are among the other gainers.
Mid-caps have also declined after the mid-morning recovery as many of the recent high fliers have lost heavy ground. The mid-cap index is trading more than 1.5 per cent lower. Market breadth on the NSE is extremely negative with almost six stocks declining for every advancing stock.
According to reports, IndiaBulls made a representation before the SEBI this morning. The stock has slipped again and is trading more than 19 per cent lower with huge volumes.
Emkay Stock Broking, which listed on the exchanges today, is trading at Rs131.6.
Tantia Construction, a new listing on the BSE, has given up part of its early gains. The stock is trading at Rs197.35 against an issue price of Rs50.
VLS Finance, HTMT and Opto Circuits are among the major gainers in mid-caps.
R Systems, Amar Remedies and Tata Sponge are among the mid-cap losers.