The key equity indices extended their previous session's gains on Tuesday led by strong global cues and value picking from investors across the board. The markets resumed trading after extended weekend and got off to a good start underpinned by buying in auto, metal and banking sector stocks. After moving in a narrow range during most part of the first half, the key indices witnessed some traction in the late afternoon trades. Buying got intensified during last hour of trade, which helped the markets to log off trade at the highest point of the day. The NSE's 50-share Nifty managed to conquer the crucial 5000-mark, the level last seen in January this year. The markets got a big boost from the budget, which proposed various concrete steps to bring the economy back to the high growth trajectory of over 9% in next few fiscals. Report of manufacturing activity in the country expanding at the fastest pace in 20 months in February also lifted the investor confidence. The whole tone was set by the strong monthly sales number from auto makers with Maruti Suzuki reporting its highest ever monthly sales in history while Tata Motors surged over twelve percent as the company's sales for the month of February jumped by 58.47%. Cement producers also witnessed good gains in trade as they raised cement prices by Rs 10-12 per bag. Aviation stocks saw some big up moves today with leadership from Jet Airways, which zoomed fifteen percent in trade. Meanwhile, real estate developers and oil marketing companies (OMCs) remained subdued during the entire session. Finally, the BSE Sensex soared 343.01 points or 2.09% to close at 16,772.56 while the S&P CNX Nifty advanced 94.7 points or 1.92% to end at 5017.

The US markets managed a flat but positive closing on Tuesday; the major indices made a good start but pared most of their gains in latter half but were up for the third straight day on the back of different corporate activities that gave a signs that companies are becoming more optimistic about the economy. CF Industries made a new offer for fertilizer maker Terra Industries. Dow Chemical Co. sold its Styron plastics business to private equity firm Bain Capital for $1.63 billion, while Qualcomm announced to buy back $3 billion in stock. The Dow Jones Industrial Average added 2.19 points, or 0.02%, to 10,405.98. The broader Standard & Poor's 500 index rose 2.60 points, or 0.23%, to 1,118.31, and the Nasdaq gained 7.22 points, or 0.32%, to 2,280.79.

Crude prices surged by about a percent on Tuesday, on signs of economic recovery and growing hopes that European leaders will complete a bailout for Greece. The euro rebounded from a low of more than 9 months against the dollar as investors awaited new plans to address Greece's debt crisis. Benchmark crude for April delivery settled up 98 cents, or 1.25 percent, at $79.68 a barrel after trading in a range of $78.26 to $80.95 on the New York Mercantile Exchange. In London, April Brent crude settled up $1.29, or 1.68 percent, at $78.18 a barrel.

The Indian rupee continued its upmove on Tuesday. After an extended weekend, the domestic currency made strong start tracking the gains in the regional equity markets and the strength in many regional currencies against the greenback. The rally in the local equity too supported the sentiment and the rupee in its intraday trade touched its two week high of 45.95, last seen on February 17. Though, the rupee pared some of its gains in the last hours due to some dollar buying by state-run banks and importers it still remained up. Finally the rupee closed at 46.01/02, 12 paise higher compared to its Friday's close of 46.13/14.

The FII on Tuesday were the net buyers in the equity segment with gross buying of Rs 3678.10 crore against gross sell of Rs 2583.70 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 199.60 crore against gross sales of Rs 826.90 crore.

The US markets closed flat supported by different corporate activities that have put a sign of confidence among investors that, if companies are going for deal making then the economy is on the recovery path. The Asian markets have made a flat start and few of the indices are marginally in red too. The domestic markets continued their post budget rally in previous session, it was a broad based rally led by the auto sector based on their bullish performance once again, today the start is likely to be cautious and flat as indicated by the global cues, some consolidation after the rally is expected for the markets.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                             Nifty Top volumes

• SAIL is planning to spend Rs 12,254 crore in the next financial year, mainly to fund its mega expansion programme.
• Rajeev Talwar, the Group Executive Director of DLF has said that there are no plans to hike prices on the change in service tax.
• Hindalco Industries has suspended operations at its Mouda unit with immediate effect due to labour problems.
• Maruti Suzuki India's sales increased by 22% for February 2010 to 96,650 vehicles, as compared to 79,190 vehicles in February 2009.
• LyondellBasell has rejected Reliance Industries' offer that values the bankrupt firm at $14.5 billion.

State-run Bharat Heavy Electricals (BHEL) has won an order worth Rs 5,778 crore from Elena Power & Infrastructure (EPIL), a company of the Indiabulls Group for setting up two greenfield Thermal Power Projects (TPP) at Nasik (5x270 MW) an...