The 30-share index, BSE Sensex continued to trade lower during noon amid volatility.

Recovery on the stock markets started after a weak opening activated by a setback in worldwide equities. The Sensex moved into the green terrain from red zone for some time in morning trade on anticipations for an economic recovery.

Reports that the majority of companies figured in the list of top taxpayers from Mumbai have paid higher advance tax for the three month period ended April-June 2009 also supported the intraday recovery.

The higher advance tax payment indicates improved earnings.

Buying and selling was being seen across select stocks. Power, banking and FMCG were in public interest, whereas IT, metal, oil & gas and auto went down.

BSE Midcap Index declined 0.92 per cent and BSE Smallcap Index was down by 0.76 per cent.

According to Nirmal Bang Securities report, “The market is cracking down but we don’t see bigger volumes taking place in the cash segment. 4550 is the important point for the Nifty to be held on the closing basis and trading below this point can bring weakness into the system. But now, when Nifty has ended the day at 4484 we see that weakness might continue for a day or two. This kind of correction is very healthy for the Indian markets as they have not consolidated during this entire rally and buying is sensible in the region of 4370-4260 from an investment perspective.”

Today, Sensex started the day at 14,788.27 after losing 87.25 points.

At 01:59 p.m., Sensex stood at 14,866.59, down 8.93 points, after hitting a high of 14,941.39 and a low of 14,621.97.

In the meantime, Nifty gained 8.20 points at 4,492.20 after touching a high of 4,513.10 and a low of 4,405.95.

The overall market breadth was mixed as it witnessed 1,256 advancements as against 1,295 declinations.

The top gainers in the 30-share index were Reliance Infrastructure (5.72%), Reliance Capital (4.83%), State Bank Of India (4.13%), Tata Power Company (2.55%), Reliance Communications (1.79%), and ITC (1.65%).

On the other hand, Sterlite Industries (India) (5.37%), Wipro (2.96%), Grasim Industries (1.92%), ACC (1.89%), and Tata Steel (1.74%) were the major losers in the Sensex.