The market recovers over 400 points from the day's low. The Sensex is currently trading at 18606, up 4 points while Nifty is at 5540, down 20 points from the previous close. The market breadth is negative with advances at 269 against declines of 927 on the NSE.

FIIs are bullish on the banking sector, states Merrill Lynch on NDTV Profit. Their picks are SBI, ICICI Bank, HDFC Bank, Axis Bank, IDFC and Reliance Industries. FIIs are reducing their positions in telecom stocks like Reliance Communications and Bharti Airtel.