Earlier, the Sensex fell over 117 points in early trade on continued capital outflows by foreign funds and selling by investors despite improved IIP numbers and steady inflation data. The NSE Nifty shed 38.05 points, or 0.47 per cent, at 7,944.85.

At 03.20 pm, Sensex was up 64.39 points at 26435.37, whereas Nifty gained 21.30 points at 7986.65 during the same time.

The 50-share index on Thursday ended below the 8,000-mark for the first time in nearly eight months.

At 11:40 am, BSE Sensex rose 257.79 points or 0.97 per cent to 26739.04. NSE Nifty rose 72.10 points or 0.90 per cent to 8094.50.

By 10:25, the Sensex was lower by 144 points at 26,624 and the Nifty dipped 50 points at 8,065. Among broader markets, BSE Midcap and Small indices are down between 0.4-0.6%.

The auction will be conducted on BSE's e-bidxchange platform from 1530 hours to 1730 hours after close of normal market hours on June 8, the exchange said in a circular today.

The Sensex failed to maintain initial gains and was trading lower in late morning trade as it came marginally under pressure due to selling at FMCG, healthcare, auto and consumer durable counters.

The samples of Maggi noodles tested in Delhi were found dangerous for consumption carrying lead more than the permissible limit. The Delhi government is likely to impose a heavy fine against Nestle for selling unsafe products.

At 1:05 PM, the 30 share Sensex shed 375 points or 1.31%, to 27,483 levels while the Nifty 50 slipped below 8,350 to 8,309 levels, down by 125 points or 1.5%.

The Nifty, too, fell 25.30 points, or 0.30 per cent, to settle at 8,433.65.