The benchmark indices are trading marginally lower after showing a recovery of more than half of early trade losses. Buying is seen in telecom, FMCG, select cement stocks as well as Cairn, ONGC, Ranbaxy Labs, SBI and PNB. However, selling continues in capital goods, metal, private banking, power, technology, auto stocks as well as in Reliance Industries.

The Sensex went down 44 points to 9,192 and the Nifty fell 12 points to 2,812, at 10:36 hours IST. BSE Midcap and Small cap indices are flat.

Market breadth is in favour of declines; about 744 shares have advanced while 1009 shares declined. Nearly 1221 shares are unchanged.

Spice Communication went up 47% higher, as BK Modi said that his company has put formal bid to board for Satyam acquisition. He might be keen to acquire 51% stake in Satyam.

BHEL slipped 4.5%, as the company's Q3 OPM was down 315 bps at 16.95% versus 20.1%. Deutsche Bank said BHEL's results are below expectations and concerned on additional gratuity charges from new wage bill. So, net income can fall 10-20% if additional gratuity is charged in Q4, DB said.

GMR Infrastructure tumbled 2.5%, as its Q3 net profit declined at Rs 40.8 crore from Rs 64.1 crore.

Suzlon Energy lost nearly 2% after disappointing third quarter numbers. Its Q3 consolidated net loss stood at Rs 58.9 crore and standalone net loss of Rs 390.9 crore versus profit of Rs 338.18 crore.

Sun Pharmaceutical fell over 5%, as its US subsidiary, Caraco has reported Q3 net sales at USD 55.7 million versus USD 81.9 million. Pantoprazole contributed to lower sales.

Markets @ 9:56 am : Nifty slips below 2800 on weak earnings, global cues

The benchmark indices have slipped following weak global cues as well as disappointing earnings from frontline companies. The Nifty breaks below 2800 mark. Banking, power, capital goods, metal, realty, teleccom, select technology and oil stocks are under pressure.

At 9:56 am, the Sensex went down 141 points at 9,095 and the Nifty fell 39 points at 2,785. CNX Midcap tumbled 47 points at 3,283.

Among the frontliners, Suzlon Energy, BHEL, ABB, Reliance Communication, Tata Motor, Power Grid, ICICI Bank, Unitech, DLF, Tata Steel, NTPC, Nalco, Sun Pharma, HDFC and Reliance Industries are weak while HCL Tech, Cairn, Punjab National Bank and ONGC are trading on the higher side.

Among the midcap stocks, GMR Infrastructure, Glenmark, Satyam have lost ground while Subex, Indiabulls Financial and Kingfisher Airlines surged.

Asian markets declined for the 1st time in last four days. Nikkei was down 3.6%. Hang Seng and Straits Times fell 0.7-1.2%. South Korea was down 0.31%. China & Taiwanese market shut for trade today.

US markets declined after 4-days of gain as US new-home sales fell to all-time low, number of Americans receiving jobless benefits surged to a record & companies continue to report dismal set of numbers.

Dow Jones ended down 226 points 2.7% at 8,149, which had gained 3.7% in previous 3 days. Nasdaq was down by 3.24% or 50.5 points at 1,508 and S&P 500 tumbled 3.3% or 29 points at 845.

Crude oil trades remained unchanged around $42 a barrel. Gold gained nearly 2% at over $905/ounce. Silver gained 1.5% to settle $12.15/ounce.

Market cues:

FIIs net buy USD 6.2 million on equity January 28

NSE F&O Jan series begins with Open Int of Rs 36,912 cr Vs Rs 33,466 cr

Big results today: L&T, DLF & Siemens

F&O cues:

Nifty Rollover at 66% versus 66.5% last time

Marketwide rollover at 75% versus 76% last time

Nifty ends down 1%; Total Open Int up 12%

Nifty Open Int PCR up from 0.93 to 1.09 (was 1.29 during starting of Jan Series)

Nifty call add 32 lakh shares in Open Int, Put add 39.7 lakh shares in Open Int

Nifty Feb Futures discount widens to 26 pts versus 7 pts

Nifty 2800 put add 16.5 lakh shares in Open Int

Nifty 2900 put add 7.5 lakh shares in Open Int

Nifty 2900 call add 10.2 lakh shares in Open Int

Nifty 2800 call add 8.3 lakh shares in Open Int