Sensex falls in volatile session; Unitech surges 13 percent

Reuters Market Eye - The BSE Sensex and the Nifty fall around 0.2 percent in a volatile session.

Shares are tracking weaker regional markets that fell after comments by U.S. Federal Reserve officials left investors uncertain about the timing of a possible reduction in its bond-buying programme.

State-run refine Oil and Natural Gas Corp gains 1.6 percent after Credit Suisse and Barclays upgraded the stock, citing valuations and upside to earnings.

Housing Development and Infrastructure shares rise 6.7 percent, paring some of the recent losses after the company clarified that its promoters were working to resolve unpaid interest on a personal loan with lenders. HDIL shares fell over 12 percent between Monday and Tuesday after a local television channel reported that its promoters failed to pay interest on a loan.

Unitech surges 13 percent as of 1:49 p.m.

Shares in Tata Motors fall 2.14 percent ahead of April-June earnings announcement on concerns about slowing vehicle sales.