Domestic markets bounced back in style on Wednesday, ending a six-day long loosing streak. Global cues remained extremely encouraging and investors' confidence was boosted by comments from the finance minister who cited that fiscal stimulus will be maintained. Investors pounced on shares from all sectors after a recent major slide that made valuations look much attractive. After opening in the positive terrain, markets showed no fatigue and kept mounting to end near the day's high. Realty, metal and software counters witnessed a massive rush of buyers; in fact stocks from these sectors played a key role in bringing merriment on the bourses. Among front-line shares, Jaiprakash Associates and Hindalco were the top performers. Finally, the 30-share BSE Sensex added 507.19 points or 3.29% to 15,912.13, while the S&P CNX Nifty rose 146.9 points or 3.22% to settle at 4710.80.

The US markets, once again closed mixed on Wednesday, on the one hand Dow and S&P were marginally higher on the other the Nasdaq ended in red. The indices made a good start and went for a rally when Fed described the US economy as showing more signs of recovery. The last hour choppy trade took the sheen out of the market as the investors grew concerned that the economic rebound they've been betting might be brief considering that job losses remain high with low consumer spending. The Fed, as expected, left its benchmark interest rate unchanged. The Dow Jones Industrial Average was up by 30.23 points, or 0.31%, to 9,802.14.The broader Standard & Poor's 500 index was marginally up by 1.09 points, or 0.10%, to 1,046.50, and the Nasdaq composite closed down by 1.80 points, or 0.09%, to 2,055.52.

The crude prices continued their upmove and went above $80 per barrel once again on Wednesday. The crude prices got a boost with Energy Information Administration report that oil and gasoline supplies dropped, the report came as a surprise as most of the analysts were expecting a rise in unused crude in storage. Benchmark crude for December delivery added 80 cents to settle at $80.40 a barrel Wednesday on the New York Mercantile Exchange. In London, Brent crude for December delivery added 78 cents to settle at $78.89 on the ICE Futures exchange.

The Indian rupee bounced back on Wednesday along with the local stock markets. The rupee closed at 47.05, 42 paise stronger compared to its Tuesday's close of 47.47. The rupee was in the upbeat mood since beginning as the regional stock markets made a good start and when the local share markets made a sharp recovery the domestic currency responded duly with a surge. The dollar retreated from its one-month high against a currency basket on Wednesday as traders braced for a policy decision from the Federal Reserve.

The FII on Wednesday were the net sellers in the equity segment with gross buying of Rs 2188.10 crore against gross sell of Rs 2488.90 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 763.20 crore against gross sales of Rs 554.10 crore.

The US markets once again closed mixed though the Fed came with an encouraging statement that the economy was on the path of recovery, the investors looked concerned about the job losses factor. The major Asian markets are not looking in a good health today and most of the indices are trading in red. The local markets that made a smart recovery in previous session are likely to be in cautious mood and profit booking cannot be denied in the early trades.

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

                                                                Nifty Top volumes

• Indian lenders of Suzlon Energy, SBI, ICICI and IDBI have told Suzlon to transfer all its debt into a single company.
• Tata Steel has cut prices of some of its steel products mainly on account of weakening global trend.
• Reliance Communications has introduced per-second billing tariff option for its subscribers across the CDMA and GSM platform.
• Tata Communications has announced that it's On-demand CRM service is now available to organisations of all sizes in India.
• Cairn India has entered into a deal to supply crude oil from its field in western India to Reliance Industries.

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