Sensex above 13,000; banks lead market recovery

Equities staged a smart recovery in the afternoon trade as traders covered short positions in banks and other heavyweights.

Market is also awaiting inflation data for the week ended September 6 which is expected to be around 12.09 per cent against 12.1 per cent previous week.
Banking stocks gained momentum after Finance Minister P Chidambaram told media that Indian banks have no exposure to Lehman Brothers. BSE Bankex was up 0.28 per cent to 6,611.48

Market breadth was still negative on the BSE with 2144 declines and 335 advances.

European market opened mixed. FTSE 100 was up 0.06 per cent, CAC 40 was up 0.09 per cent and DAX was down 0.02 percent.