Buying was seen in capital goods, cement, auto, pharma and select technology stocks.
The 30-share BSE Sensex closed at 17,097.55, down 21.48 points, after seeing day's high of 17,275.19 and low of 17,048.17.
The 50-share NSE Nifty fell 11.60 points, to settle at 5,105.70; it traded in a range of 5,090.15-5,156.70.
On the global front, Asian markets ended higher; Shanghai rose 1.7 pc and Hang Seng went up 0.84 pc. Kospi and Taiwan Weighted gained 0.3-0.5 pc. Nikkei and Straits Times were flat.
Buying continues, Nifty shrugs off inflation news
Buying in technology, capital goods, metal, cement, pharma, auto and oil & gas exploration companies' shares continues to help Nifty trade higher. The indice also shrugged off higher-than-expected inflation numbers.
At 1: 18 pm, the BSE Sensex was trading at 17,260, up 141 points and NSE Nifty was at 5,151, up 34 points.
Gaining 2 to 3.7 per cent, the top gainers were ACC, M&M, Infosys, BHEL, Grasim, Siemens and Ranbaxy Labs.
Cement stocks were also active on the markets Ambuja Cements, Binani Cement, Birla Corp, Dalmia Cement, Heidelberg Cement, India Cements, JK Cement, Madras Cements, Mangalam Cement, Prism Cement, Shree Cements and UltraTechCement gained 1 to 5 per cent.
Among the mdicaps, SKF India, Havells India, Kesoram and Gujarat NRE Coke were up 4.5 to 12 per cent while REI Six Ten, Blue Dart, Oriental Bank, Jindal Saw and Sunteck Realty fell 3 to 6 per cent.
In the smallcap arena, Kolte-Patil shot up 17 per cent while Ganesh Housing, Supreme Industries, Oriental Hotels and Techno Electric moved up 7 to 10 per cent.
GSS America, Lakshmi Energy, PNB Gilts, Kwality Dairy and Ushdev Int dipped 4.5 to 5 per cent.
Mkts extend gains on buying in IT, auto, pharma
Buying continued in oil & gas, technology, capital goods, auto, pharma, metal, pharma, cement and select banking stocks helping the markets to extend gains. At 11: 53 am, BSE Sensex was up 127 points at 17,246 and NSE Nifty was up 30 points at 5,147.
However, the gains were capped by selling in few stocks like Bharti Airtel, JSPL, HDFC Bank, Idea Cellular, HDFC and HUL.
The markets were also hit by higher-than-expected inflation numbers which stood at 4.78 per cent for Nov 2009 as opposed to 1.34 per cent in Oct 2009.
The largecap gainers were M&M, ACC, Sun Pharma, Grasim, ONGC and Siemens up 2 to 3 per cent.
Among the midcaps, Gujarat NRE Coke, Madras Cements, Prism Cement, Sun Pharma Advanced and Emami gained 3.5 to 5 per cent while REI Six Ten, Shree Renuka, Mcleod Russel, Sunteck Realty and Oriental Bank dipped 2.5 to 5 per cent.
The gainers in the smallcap arena were Kolte-Patil, Best and Crompt, Techno Electric, Oriental Hotels and Suraj Stainless up 6 to 12 per cent. The losers were Falcon Tyres, GSS America, Kwality Dairy, OCL Iron and Automotive Axle down 4 to 5 per cent.
12: 37 PM
Mkts bounce back on Dubai news after opening lower
The Indian markets bounced back on buying interest and good news from Dubal after opening lower. At 9:59 am, the NSE Nifty was up 20 points to 5,137 and the BSE Sensex gained 86 points, to 17,205.
Metal, cement and pharma stocks were seeing buying interest. The markets were trading amid volatility.
The markets received the news from Dubai well as Dubai has decided to pay 4.1 billion dollars for Nakheel Bond. Nakheel's 3.5 billion dollars bond would be matured on Monday, Dec 14.
Hindalco, SAIL, ABB, Cipla, Sun Pharma, Reliance Capital, ACC and Maruti Suzuki were the frontline gainers.
However, the losers among the frontliners were Bharti Airtel, Idea, Cairn, ICICI Bank, HDFC, Reliance Communication, DLF, L&T, HUL and Jindal Steel & Power.
Among the midcaps, Vishal Info and Dynacons Systesm shot up 6 to 7 per cent, India Cements and Prism Cement went up by 2 per cent and Binani Cement surged 5 per cent.
LGB Brothers surged 6 per cent while PSL and MTNL went up 2 per cent each. FCS Software was up 1.5 per cent.
Cox & Kings, which was listed on Friday, Dec 11, gained another 6.6 per cent to Rs 453 per share.
10: 28 AM