Markets were expected to open very weak following substantial losses in the US markets yesterday and weakness across Asian markets in early trades today. Sentiment was already weak after yesterday's correction.
The indices slipped sharply in opening trades and the Sensex went down more than 200 points from yesterday's close. However, both indices recovered part of their losses within minutes and are now consolidating.
Sensex opened at 12401 and touched a low of 12224 before recovering. The index is trading lower by 130 points at 12305 at 11.10 AM.
Nifty opened at 3704, touched a low of 3634 and is trading lower by 43 points at 3658.
Reliance Petroleum is subdued in early trades. The stock saw a high of Rs86.7 and is now trading flat at Rs85.4.
Reliance Industries is maintaining the downtrend and has lost another 2 per cent in early trades. The stock had lost more than 5 per cent yesterday.
Stocks of oil marketing companies are also weak on expectations that the left parties would not allow a fuel price hike after their poll victory. BPCL has lost more than 2 per cent while HPCL is trading around 1.5 per cent lower.
Cement stocks are weak as the commerce ministry has convened a meeting on reducing cement prices. Gujarat Ambuja is the biggest loser among index stocks, having lost more than 2.5 per cent. ACC is trading nearly 1.5 per cent lower.
Select banking stocks continue to be under pressure, led by PNB. The stock has lost more than 2 per cent while SBI is trading more than a per cent lower.
Among private sector banks, ICICI Bank has lost nearly 2 per cent while HDFC Bank is trading almost a per cent lower.
MTNL, Zee Tele and ITC are among the other major losers.
Dabur is continuing its dream run despite the market weakness on more unconfirmed reports of its overseas acquisition plans. The stock has added another 2.5 per cent in early trades.
Hindalco is firm in early trades on reports that its Australian subsidiary got listed today at a substantial premium to the offer price. Hindalco holds a 51- per cent stake in the subsidiary. The stock has declined from its highs and is now trading more than a per cent higher.
Select auto and two-wheeler stocks are firm in early trades. Hero Honda has added more than a per cent while Bajaj Auto and Maruti have added close to 0.5 per cent each.
Dr Reddy's, L&T, HCL Technologies and Tata Steel are among the other gainers.
Mid-caps also opened considerably weak in early trades before recovering. The index is trading with losses of around 0.35 per cent. Market breadth on the NSE was substantially weak in opening trades but has now improved with nearly 1.5 stocks declining for every advancing stock.
There is no stopping Kamdhenu Ispat, which listed earlier this week. The stock has added another 10 per cent.
KEI, Srei Infrastructure Finance and SAL Steel are among the major gainers in mid-caps.
OCL, BEPL and Nava Bharat Ferro are among the mid-cap losers.