The BSE Sensex gained more than 50 points in early trade following positive global cues, but could not sustain those gains due to weakness in Infosys, Bharti, Reliance and L&T.
The BSE benchmark rose 18 points to 18,629 and the NSE benchmark was up 5.6 points at 5,665.85.
Asian markets like Shanghai and Nikkei rallied 1-2 percent following strong US housing data, indicating some improvement in economic growth. Hang Seng and Straits Times were up 0.5 percent.
Back home, the Indian rupee fell below the 53 level, losing 21 paise to 53.08 against the US dollar.
Ambuja Cements and ACC gained 0.5-1 percent ahead of September quarter results today.
DLF, Tata Power, ICICI Bank, Bank of Baroda, Jaiprakash Associates, Hindalco, Cairn India, Lupin, Dr Reddy's Labs and Maruti gained.
Bharti Airtel, Infosys, L&T, Sun Pharma, Coal India and Jindal Steel were down in early trade.
The CNX Midcap Index went up 30 points to 7,892 as about two shares advanced for every share declining on the National Stock Exchange.
In the second line shares, Rallis India rallied over 2.5 percent on sharp jump in net profit of September quarter.
Kingfisher Airlines tanked 5 percent as Aviation Minister Ajit Singh yesterday says if Kingfisher fails to satisfy Directorate General of Civial Aviation (DGCA), it will recommend suspension of license.
UB Holdings too was down 2 percent following that news.
Dish TV rose 1.5 percent ahead of second quarter earnings today. The stock surged 5 percent yesterday.
Jain Irrigation bounced back with 2 percent gains. GIC Housing gained another 1 percent after results.
TV Today and Sun TV were up 1-3 percent. Eveready Industries was up 4.4 percent.
MphasiS lost 2.3 percent and Piramal Enterprises was down 0.4 percent after the National Stock Exchange decided to remove both stocks from F&O segment with effect from December 28.
Reliance Communications fell 1 percent on profit booking.
Unitech and IRB Infrastructure were up 1.5 percent.
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