The Indian equity benchmarks came off intraday highs but continue to trade with a positive bias as gains in Reliance Industries, HDFC, HDFC Bank, ITC and Axis Bank were offset with profit-booking in recent outperformers like ICICI Bank, Infosys, TCS, State Bank of India and Bajaj Finserv, data from stock exchanges showed. Earlier in the day, Sense fell as much as 303 points from day's highest level and Nifty 50 index slipped below 17,550 after surging to three-week high of 17,607.
As of 12:53 pm, the Sensex was up 191 points at 59,132 and Nifty 50 index rose 36 points to 17,523.
Meanwhile, most of the European markets were trading on a flat note with Germany's DAX up 0.2 per cent, Britain's FTSE 100 rose 0.2 per cent and France's CAC 40 index advanced 0.3 per cent.
Sentiment across Europe was risk averse after reports suggested that new commander of Russian forces in Ukraine made a rare acknowledgment of the pressures they were under from Ukrainian offensives to retake southern and eastern areas that Moscow says it annexed just weeks ago, news agency Reuters reported.
Meanwhile, inflation in UK accelerating to a 40-year high in September also added to subdued sentiment.
UK inflation accelerated to a 40-year high in September as the soaring cost of food squeezed household budgets.
The consumer price index rose 10.1%, compared with 9.9% the previous month, the Office for National Statistics (ONS) said Wednesday. The new data shows inflation returned to the July peak and is once again at the highest since early 1982.
The increase was driven by food prices, which leapt by 14.5% from a year earlier, the biggest jump since 1980, the ONS said.
Back home, ten of 15 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Oil & Gas index's 1 per cent gain. FMCG and select consumer durable shares were also witnessing buying interest.
On the other hand, banking, IT, media and metal stocks were facing selling pressure on account of profit booking.
Mid- and small-cap shares were trading flat as both the indices were trading little changed.
Among the individual shares, Piramal Pharma shares, which got listed as a separate entity after getting demerged from Piramal Enterprises, were locked in 5 per cent lower circuit at Rs 192 on the BSE.
HDFC was top Nifty gainer, the stock rose 2 per cent to Rs 2,379. Reliance Industries, Nestle India, ITC, Bajaj Auto, Axis Bank, HDFC Bank, SBI Life, Power Grid and Titan were also among the gainers.
On the flipside, State Bank of India, JSW Steel, Bajaj Finserv, Coal India, ICICI Bank, Infosys, Tata Consumer Products, TCS and Hero MotoCorp were among the losers.
