Markets are seeing modest volatility in early trades as global cues are mixed. After opening firm, the indices declined before recovering. The Sensex and Nifty are trading close to 12100 and 3500 respectively.

Sensex opened at 12103 and rallied to a high of 12131 before declining to 12049. The index has recovered and is trading higher by 25 points at 12096 at 11.10 AM.

Nifty opened at 3494 and touched a high of 3507. The index is now trading higher by 3 points at 3496.

Metal stocks have recovered and are helping the indices to hold on to their levels. Hindalco is the best performer among index stocks with gains of nearly 2 per cent.

SAIL has added over 1.5 per cent while Tata Steel is trading nearly 1.5 per cent higher. Nalco has added close to a per cent.

Select pharma stocks are continuing the up trend today as well. Ranbaxy has added more than 1.5 per cent while Dr. Reddy's has gained close to a per cent.

Satyam Computer is also maintaining the up trend and has added more than 1.5 per cent.

Reliance Communications and MTNL have added over 0.5 per cent each.

Gail India is the other gainer, trading more than 0.5 per cent higher.

HDFC has corrected after the rally over last two sessions. The stock has lost nearly two per cent and is the biggest loser among index stocks.

PNB has lost over a per cent. HDFC Bank and OBC have lost close to a per cent each.

Jet Airways remains under profit booking pressure and has lost nearly 1.5 per cent.

Among pharma stocks, Glaxo and Sun Pharma have lost nearly a per cent each.

Suzlon has corrected nearly a per cent after rallying more than 4 per cent yesterday.

HCL Tech and Grasim are the other major losers.

Mid-caps and small caps are doing much better than the large caps, though the NSE mid-cap index is subdued because of the weakness in IndiaBulls. Many stocks which had seen buying momentum in recent weeks are sustaining the up trend.

The NSE mid-cap index is now trading with marginal gains of less than 0.05 per cent. BSE mid-cap index is trading with gains of nearly 0.35 per cent and the small-cap index has added over 0.6 per cent. Market breadth on the NSE is modestly positive in morning trades with more than one stock advancing for every declining stock.

Biocon is the best performer among the prominent mid-caps, gaining nearly 9 per cent.

Dewan Housing is continuing its uptrend and has added more than 6 per cent. The stock had rallied 20 per cent yesterday.

Reliance Natural Resources is locked in the 5 per cent upper circuit after the circuit limit was reduced from 10 per cent. The stock had gained 20 per cent over the last two sessions.

Adhunik Metalliks, Datamatics, Polyplex, Tips Industries, First Leasing, Fedders Lloyd, Educomp and IFB Industries are among the major mid-cap gainers.

Birla VXL remains locked in the 5 per cent lower circuit for the fourth straight session.

Softpro, SB&T International, Shivalik Global, Cinevistas and Bank of Maharashtra are the major mid-cap losers.