Following a firm start in the European markets, stocks recovered and regained some lost ground on the Indian bourses this afternoon, but the indices look set for a weak close as investors appear quite reluctant to switch over to the buying mode.
After a firm start on the back of the government's decision to allow 49% FDI in the insurance sector and to open up the pension sector to FDI, the market tumbled with investors going on a selling spree, choosing to take profits almost across the board.
The Sensex is currently down 96 points or around half a percent at 18,963, while the Nifty index of the National Stock EXchange is down with a loss of 35 points or 0.6% at 5752.60.
FMCG, consumer durables, automobile and capital goods stocks are back in demand. Metal and oil stocks are well off the day's lows now. Power and realty stocks too have regained most of the lost ground.
Information technology, healthcare and bank stocks continue to trade weak. Though select midcap stocks have recovered well, smallcap stocks continue to trade lower.
Tata Motors tops the list of gainers, moving up by around 2.2%. Hindustan Unilever is up with a gain of 1.7%, ONGC is trading 1.2% up and Mahindra & Mahindra is up by a little over 1%. Hindalco, Reliance Industries, Coal India, Larsen & Toubro and ITC are also trading in positive territory.
HDFC continues to languish in negative territory with a sharp loss of around 4.6%. Wipro is down 2.3%. Sun Pharmaceutical Industries, Infosys, ICICI Bank, HDFC Bank, BHEL, Bajaj Auto and Bharti Airtel are also trading notably lower.
Rashtriya Chemicals & Fertilizers is down more than 6%. Aurobindo Pharma, Central Bank of India , Oberoi Realty, Bajaj Finserv, Adani Power, Shree Cement, Bank of India, Divi's Laboratories, Union Bank of India, NMDC, Idea Cellular and Reliance Infrastructure are also down with sharp losses.
Essar Oil has spurted more than 13% to Rs 60. Indiabulls Real Estate is up nearly 7%. Gitanjali Gems, Adani Enterprises, Crompton Greaves, Mangalore Refineries & Petrochemicals, Thermax, L&T Finance Holdings, Castrol India, United Breweries and Dabur India are up 3% - 6%.