But later, major heavy weight stocks drifted lower on weak Asian markets, failing to sustain yesterday's rally. Larsen&Toubro and Grasim Industries were major losers from Sensex pack. Capital goods and consumer durables stocks declined. The market breadth was negative. Asian markets which opened before Indian markets were in the red.
The 30-share BSE Sensex was down by 268.79 points or 1.71 per cent at 15,488.29 points from it's last close. It touch the day's low of 15,479.42, and high at 15,770.40 points in early trade.
The broader-based S&P CNX Nifty index of National Stock Exchange (NSE) resumed flat at 4760.65 points, later it was down by 86.38 points or 1.54 per cent at 4,687.90 from it's last close of 4761.20 points. The Nifty recorded the day's high at 4769.55 and low at 4683.40 points during the mid-morning session.
The market breadth was negative on BSE 673 shares advanced as compared to 754 that declined. All 38 shares remained unchanged.
The BSE Mid-Cap index was up by 0.1 per cent to Rs 6,350.78 and BSE Small-Cap index was up by 0.11 per cent to 7,786.34.
The key Benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan swung low between 0.31 per cent and 1.22 per cent, which affected to downward trend at the Indian bources, brokers pointed out.
Capital goods stocks declined. Larsen&Toubro was down by 3.04 per cent to Rs 2,637.10 followed by Suzlon Energy by 1.07 per cent to Rs 291.10 edged lower. However, India's largest power equipment maker by sales Bharat Heavy Electricals rose by 2.06 per cent to Rs 1,670.
Consumer durables stocks declined. Lloyd Electric eased by 1.28 per cent to Rs 96.05, Titan Industries declined by 0.19 per cent to Rs 1,025, Blue Star slipped by 0.34 per cent to Rs 420, Videocon Industries dropped by 0.37 per cent to Rs 319.30 edged lower.
Grasim Industries declined by 2.95 per cent to Rs 2,550 followed by, Wipro that lost 2.29 per cent to Rs 424, Bharti Airtel by 2.38 per cent to Rs 800.10, Tata Consultancy Services by 1.27 per cent to Rs 888.50 and ICICI Bank by 0.77 per cent to Rs 803.90 edged lower from the Sensex pack.
Satyam Computer Services, however was up by 0.88 per cent to Rs 435.95, HDFC Bank gained by 0.61 per cent to Rs 1,311.05, Cipla was up by 0.33 per cent to Rs 215.65 were among the gainers from Sensex pack.
India's largest private sector company in terms of market capitalisation and oil refiner Reliance Industries declined by 0.47 per cent to Rs 2,395. A consortium of Reliance Industries (RIL) has reportedly discovered oil in Yemen. The discovery in Block nine in Qarn Qaymah two well is considered to be significant, and RIL is in process of evaluating the viability.
Good results are expected from the telecom sector on the back of strong growth in new subscribers additions. Infrastructure and engineering firms, too, are seen reporting decent numbers in Q4 March 2008 on the back of healthy order book positions. The performance of auto firms is likely to be sluggish due to muted volume growth and rise in input costs.
A depreciation of the rupee against the Dollar is likely to drive good results from the IT sector on a sequential basis in Q4 March 2008 over Q3 December 2007, though the focus here is on guidance for the year ending March 2009 from IT bellwether Infosys Technologies.
Infosys guidance will give investors a sense of the effect of the weakening US economy on technology spending by companies there, brokers added.