The market has regained a significant portion of lost ground past mid morning thanks to some strong buying in FMCG, PSU and realty stocks. Select stocks from metal, healthcare and banking sectors too have come off their lows now.
Information technology stocks continue to trade weak. Capital goods, power and oil stocks too are mostly seen struggling to wriggle out of trouble. Bank and automobile stocks are off their lows, but are mostly trading flat.
The Sensex, which had tumbled to 16,742.07 earlier in the day, is currently down 16.59 points or 0.1% at 16,896.12. The Nifty index of the National Stock Exchange is down 8 points or 0.15% at 5106.15, well off the day's low of 5062.75.
In the currency market, the rupee edged higher against the US dollar, extending overnight gains. The partially convertible rupee was quoting at 52.71 per dollar in early trades, up 20 paise against its previous close of 52.91.
GAIL India is up 3.7% at Rs 330.50. Coal India has notched up a gain of 2.8% at Rs 337.75. DLF is up 2.2% at Rs 194. FMCG heavyweights ITC and Hindustan Unilever are trading higher by 2% and 1%, respectively.
Shares of state run MMTC Limited are up more than 10%. STC is up 6.8% and Hindustan Copper has moved up by over 6%. HMT, National Fertilizers, Power Finance Corporation, Rashtriya Chemicals & Fertilizers, REC, Neyveli Lignite Corporation, Container Corporation, BPCL and Engineers India are also up with strong gains.
Information technology stocks are trading weak today following Cognizant Technology Solutions Corp revising its 2012 guidance downwards by nearly $200 million (around Rs 1,066 crore), due to a slower than anticipated acceleration in demand.
Sector heavyweights Tata Consultancy Services (down 4%), Infosys (down 2.4%) and Wipro (down 1.4%) are trading sharply lower. HCL Technologies is down with a loss of 2.6%. Hexaware, Financial Technologies, Mphasis and Core Projects are the other prominent losers in the IT index.
SKS Microfinance plunged 20% to Rs 75.85, hitting an all-time low following the company reporting a net loss of Rs 330 crore for the quarter ended March 2012 on account of a Rs272 crore write-off on its Andhra Pradesh loan portfolio. The company had posted a net loss of Rs 70 crore in the previous year quarter.