Markets trim losses as heavyweights recover

Markets trimmed losses after index heavyweights which had slipped into the red in early deals staged a recovery and were now trading in positive zone.

At 10:35AM the Sensex down 44 points at 19,939 after hitting an intra-day low of 19,827 and the 50-share Nifty was down 14 points at 5,914 after touching an intra-day low of 5,877.

The Indian rupee continued to remain weak agains the US dollar in early trades and was trading at 62.18 compared to previous day's close of Rs 61.79.

Asian markets were trading mixed as concerns over the stalemate in the US weighed on investor sentiment. The Hang Seng and Shanghai Composite were down 0.1-0.6% each while Nikkei and Straits Times were up 0.4-0.6% each.

The Bankex which was down nearly 2% in early trades was now trading 1% lower. Meanwhile, other sectoral indices which gained include, Realty, Healthcare, FMCG, Oil and Gas.

In the banking pack, ICICI Bank and SBI were down over 2% each while HDFC Bank was down 0.4%.

Index heavyweights Reliance Industries, ITC and HDFC which were down in early trades were now trading firm up 0.1-0.6% each.

Other stocks that contribued to the Sensex gains include, Sun Pharma, Tata Motors and Hindustan Unilever.

Country's largest realty firm DLF gained 1% after it said that it has completed the sale process of 33MW wind turbines project in Rajasthan to Violet Green Power for Rs 67.44 crore.

Among other shares, Kaveri Seed Company has surged 6% to Rs 1,539 on reports that Bayer CropScience is planning to buy a minority stake in the Hyderabad-based agricultural products company.

GOL Offshore is trading higher by 5% at Rs 51 in otherwise weak market after the company said that it has signed a contract worth of Rs 710 crore with Oil & Natural Gas Corporation Limited (ONGC) for the reconstruction of the gas processing platforms of ONGC on the West Coast of India.

PTC India is trading higher by 4% at Rs 52.60 after the state-owned electric utilities firm said that it has received outstanding dues of Rs 778 crore from UP Power Corporation.

The broader market outperformed the benchmark indices with both the Mid-cap and Small-cap indices up 0.5% each.

Market breadth was positive with 961 gainers and 678 losers on the BSE.