Nifty also gained support from buying in realty, auto, telecom, oil marketing, cement, oil & gas and private power companies' shares.
The BSE Sensex closed at 16,741.30 up 30.19 points and the NSE Nifty shut shop at 4976.05 up 10 points.
However, selling in select stocks like ICICI Bank (down over 3.5 per cent), Reliance Communication, ITC, SAIL, Sun Pharma, Sterlite Industries, Tata Motors, Tata Steel, HDFC, PNB and HDFC Bank capped the gains.
Sell off putting pressure on benchmarks
At 12:14, the Nifty was down 24 points at 4,941 and the Sensex was down 74 points at 16,636. Sensex continued to trade amid volatility.
Selling in telecom, banking (except SBI), steel and PSU power stocks was exerting pressure on the benchmark indices. DLF, HDFC, BHEL, Tata Motors, Sun Pharma and HCL Tech were the other losers while cement, aluminium and technology stocks was supporting the markets witnessed buying.
ICICI Bank and Reliance Communication fell over 3 per cent.
Reliance Industries, ONGC, SBI, Hero Honda, Reliance Infrastructure, Ranbaxy and Unitech were the other supportive counters.
Top percentage gainers were Mirza International, Liberty Shoes, Bannari A Spg, JK Cement, Andhra Cement and Binani Cement were up 10 to 15 per cent.
Top percentage losers were Jumbo Bag, Pokarna Limited, Ken Financial, Hariyana Ship, Medi-Caps, Shipping Corp, Star Paper, MVL Industries, Kinetic Motor and Advani Hotels slipped 5 to 10 per cent.
Among midcaps, Shree Cements, Bajaj Finserv, Madras Cements, Bharat Forge and HCC gained 4 to 9 per cent while Shipping Corp, Dena Bank, Kirloskar Brothers, GVK Power and Bajaj Hindusthan fell 3 to 5 per cent.
Nifty choppy; power, reality, auto dip
While Nifty was choppy in trade and was hovering around its previous closing value, Sensex continued to trade in the red. At 11: 07 am, The Sensex was down 21 points at 16,689 and the Nifty declined 6.6 points at 4,958.
However, the broader indices were outperforming the benchmarks indices.
Selling in private banking, PSU power, realty, auto (four-wheeler) and select capital goods capped the gains. Bharti Airtel, Reliance Communication, ITC and Sterlite Industries were also the losers.
Cement stocks along with Reliance Industries, SBI, ONGC, Infosys, TCS, Nalco, Hindalco, Jindal Steel, Tata Steel, Hero Honda, Reliance Infrastructure, HUL, Tata Power, BPCL and Ranbaxy Labs were witnessing buying interest.
Among the midcaps, Shree Cements, Bharat Forge, Karnataka Bank, Essar Shipping and HCL Info were up 5 to 9 per cent while Shipping Corp, REI Six Ten, Aventis Pharma, Kirloskar Brothers and Kansai Nerolac fell 2.5 to 4.5 per cent.
In the smallcap arena, JK Cement, Andhra Cement, Deep Industries, Bata India and Raymond went up 8 to 14 per cent while Oriental Hotels, JMD Telefilms, Gokaldas Export, Geekay Finance and Advani Hotels slipped 5 per cent each.
11: 56 AM
Sensex volatile; Tata Motors, Siemens, ITC lose
The Sensex opened the day in the red and immediately turned volatile while the broader indices were flat in the early trade. At 9:57 am, BSE Sensex was down 15 points at 16,695 and NSE Nifty down 3 points at 4960.
The losers among the frontliners were Tata Motors, Siemens, Sterlite Industries, ITC, M&M, ABB, PNB, SBI, ICICI Bank, Hindalco and SAIL while HCL Tech, Reliance Industries, Infosys, Axis Bank, ACC, Reliance Infrastructure, BPCL, GAIL and ONGC gained.
Among the midcaps, Raymond was up 8 per cent, Bata India also shot up 7.5 per cent while Mirza International, ICI India, Autoline Industries, Bharat Forge, Heidelberg Cement, 3i Infotech and Firstsource were the other gainers.