Sensex settles on recovery hopes:

BSE benchmark Sensex and the 50-stock NSE Nifty have, so far, resisted deep cuts. Both indices stayed in green briefly and then slipped marginally to trade at 17,098 (down 32 points ) and 5,152 (down 8 points) respectively. The consolidation in market suggests what the experts have been saying -- that the sell-off was overdone and a recovery is on cards.

The market breadth started improving – about 532 shares advanced as against 558 shares declined on National Stock Exchange.
 Sensex sees moderate cut despite bloodbath in US

Defensive sectors like healthcare and FMCG were seeing buying interest. Even select financial stocks like HDFC, HDFC Bank, Kotak, Mahindra Bank and PNB gained 0.5-1%.

Heavyweights Reliance Industries and SBI too were quite supportive.

However, technology, auto, realty and select metal stocks were putting pressure on the market.Indian benchmark indices witnessed a moderate cut despite a severe sell-off in the US. The 30-share BSE Sensex slipped 41 points to 17,089 and the 50-share NSE Nifty

lost just 15 points to trade at 5,146. Technology, metal and banks are in stress in the morning trade. Global benchmarks indices retreated post rumours that there may be downgrade in France, which commands AAA rating.

Among technology stocks, Wipro, HCL Tech, Infosys and TCS were down 1-1.5%.

Tata Motors, which rallied 6% yesterday, fell 1.5% on profit booking.

Metal stocks like Hindalco, Tata Steel, Sesa Goa and SAIL too were on sellers' radar.

Reliance Capital, Reliance Communications and Kotak Mahindra Bank were marginally in the green. Cipla gained 1%.

Heavyweights SBI, Bharti Airtel, HDFC Bank, L&T and Reliance Industries slipped 0.5-1%.

Asian markets were quite volatile. Hang Seng, Nikkei and Straits Times fell 1-1.5%. However, Shanghai and Kospi gained 0.4-0.7%. Taiwan was flat.