Markets are trading lower in today’s session as the Consumer price index- (CPI) based inflation for June jumped to a four-month high of 5.4%, mainly driven by higher than expected food inflation dampening the hopes of a further rate cut.

Meanwhile, investors remain cautious ahead of the WPI numbers due to be released later during the day.

Markets have recovered from the lower levels and are trading marginally positive led by pharma shares. However, the upside is capped due to selling among index heavyweights like Tata Motors, RIL and HDFC.

At 10:40AM, the 30-share Sensex was up 11 points at 27,972 and the 50-share Nifty was up 2 points at 8,462.

Even though many investors in India prefer active funds, passively managed funds have seen an upsurge in demand. Recent data from the National Stock Exchange (NSE) indicates that, exchange traded funds (ETFs) have seen huge uptick in volumes in the last decade. Daily average value in ETFs on NSE which used to be less than a crore a day has surged to around Rs 70 crore in the last 10 years.

BSE Sensex and NSE Nifty were butchered in last session under influence of Chinese free fall. Today, the start is likely to be cautious and some stabilization can be expected after the steep fall.

Traders will be getting some support with global rating agency Standard & Poor’s statement that the confidence level in India continues to grow amid indications of slower growth ahead for the Asia-Pacific region.

Shares of information technology (IT) companies were under pressure, with the National Stock Exchange (NSE) CNX IT index touching six-month lows ahead of Tata Consultancy Services (TCS)' April-June quarter results today.

TCS and HCL Technologies were down 2% each at Rs 2,537 and Rs 914 respectively, while Infosys (1.6% at Rs 942), MindTree (1% at Rs 1,215) and Oracle Financial Services Software (1% at Rs 3,857) were down between 1% and 2%. However, Tech Mahindra and Wipro were trading in the green, up by less than 1%.

The benchmark BSE Sensex cracked the 28,000-mark by tumbling 500 points today on across-the-board selling by participants, tracking more heavy losses in Shanghai and on fears about Greece’s future in the Eurozone.

At 11:56 am, BSE Sensex trades 485.89 points down to 27,685.80. NSE Nifty sinks 143.00 points down at 8,367.80.

The benchmark Sensex rose over 150 points to trade above the 28,000 mark in mid-session trade today as value-based buying in consumer durables, healthcare, power, capital goods and auto sectors took the recovery forward.

With this, the index brushed off losses in other Asian markets ahead of the Greece referendum.

Shares of Bajaj Auto have moved higher by 2.4% to Rs 2,586 on the National Stock Exchange (NSE) after the company sold 331,317 units in June 2015, representing a year-on-year (yoy) growth of 8%, the highest in past nine months.

The automaker had sold 305,465 units in June 2014. It had sold 345,438 units in the last month May, 2015.

Benchmark index, Sensex is heading toward the highest fall in a span of four weeks as the fear of Greece default spooked investors amid loss in the Chinese stocks despite a decision by the central bank to cut interest rates to a record low.

Weakness in the rupee owing to persistent demand for the American currency from importers has further dampened the sentiments. The rupee is currently trading at 63.86 against the US dollar.

Both the indices, BSE Sensex and NSE Nifty, surged further by 496 points and 156 points, respectively, on persistent buying from investors on hopes of rate cut from Reserve Bank of India (RBI) in view of above-average monsoon rains.

India Meteorological Department (IMD) said in its daily monsoon update showed that the southwest monsoon has been further advanced into remaining parts of north Arabian Sea. For the country as a whole, the cumulative rainfall during this year’s monsoon season was 24 per cent above the Long Period Average (LPA) until June 24.

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