After crossing the 28,000-mark in the opening hours, the Sensex slipped below this psychological mark at 12 noon on Tuesday, as investors started booking gains on previous rises.
The 30-share Sensex was ruling up marginally, by about 5 points at 27,883, with domestic funds mostly buying shares.
The mid-cap segment has been seeing much of the action with the S&P BSE midcap rising the most among all indices, by about 32 points, a clear indication of increased activity from domestic mutual funds.
Ashok Leyland is the gainer till now with the stock up 5.3% in intra-day trade at Rs 96.60 while pharma company Glenmark was up 2.5% at Rs 1158, and power company Alstom 2.4% at Rs 525.90.
The losers so far are Sun TV, down by 7.8%, JP Associates fell by 2.9% and Bank of India steeped 2.7%.
The BSE small cap index too rose by about 31 points, with Signet Industries up by 9.2% and Shrenuj & Co up by 8.3%.
“Continued depreciation of the rupee is another factor for the marginal trading activity in the markets now,” said a broker, adding that the markets are now looking at some concrete action from the Reserve Bank of India in the form of a rate cut.