Sensex erases gains; Bharti, ONGC, ICICI Bank weigh down

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs

The market erased almost all its gains, weighed down by Bharti, ONGC, and private banks stocks. However, technology, metals (barring Tata Steel), capital goods stocks, and Reliance Industries were supporting the markets. Even European markets too came off day's high, rising 0.2-0.6%.

Back home, the Sensex rose 44 points to 17,666.86 and the Nifty gained 20 points at 5,354.85 amid volatility.

However, experts turned cautious after a spectacular rally in 2012 and asked to take profits.

Alok Sama, president and founder, Baer Capital Partners tells CNBC-TV18 that it is good time to book profits. He says that the markets are seeing a liquidity-driven rally and he expects this rally to fade going ahead. "One needs to be cautious on the market now," he adds.

Shares of Reliance Industries, Infosys, HDFC, TCS and HUL rallied 1.4%. HDFC Bank, L&T, SBI, BHEL and NTPC gained more than 0.5%.

Jindal Steel, Coal India, Hindalco, Wipro, GAIL, DLF, Sterlite Industries and Maruti Suzuki among other largecaps rose 2-3%.

However, shares of country's biggest telecom operator Bharti Airtel tumbled over 6% on less than expected net profit in third quarter of FY12.

Index heavyweights - ONGC fell 2% ahead of quarterly numbers today; ICICI Bank dropped over 2% after Temasek arm sold 1.59 crore shares of the bank via block deal.

The broader markets continued to outperform benchmarks - the BSE Midcap and Smallcap indices rose 1.2%.

At 12:43 hours IST : Nifty holds morning gains; Reliance Infra tops buy list

The market continues to trade higher despite volatility. Much of it can be attributed to positive Asian markets, which are expecting a positive outcome from Greece today.

Technology, metals, capital goods and banks (barring ICICI Bank) helped the market stay higher. The Sensex was up 113 points at 17,735.87 and the Nifty rose 40 points to 5,374.95.

Robert Prior-Wandesforde, head of India & South East Asia economics at Credit Suisse feels that right now India is in a sweet spot. "Nonetheless, most of the bad news should be in the price as far the economy is concerned," he says.

Shares of Jindal Steel, Hindalco, DLF, Coal India, GAIL, Reliance Infrastructure, Sesa Goa, Reliance Power and IDFC were biggest gainers among largecaps, rising 2-4%.

Reliance Industries, Infosys, HDFC, TCS, HDFC Bank, SBI, HUL and L&T advanced 0.7-1.5%.

However, Bharti Airtel crashed 5.65% after its bottomline was hit by higher interest and tax cost. ICICI Bank, ONGC and ITC were down 1-1.5%.

In the midcap space, Manappuram Finance bounced back today, rising 7% (stock had locked at 20% lower circuit yesterday). HMT, HDIL, IFCI and Indiabulls Real rose 7%. However, Responsive Industries, KSK Energy Ventures, Muthoot Finance, M&M Financial and Jet Airways fell 2.5-9%.

Smallcap stocks like Gati, Nilkamal, Jagatjit Industries, Ruby Mills and Sabero Organics shot up 10-20% while KGN Enterprises, Commercial Engg, ARSS Infra, Sahara One and Midvalley Entertainment slipped 5%.

Advancing shares outnumbered declining by 1693 to 936 on the BSE.