The key equity indices witnessed modest gains on Wednesday despite strong up-move in early trade as investors opted to take some profit off the table at higher levels. The BSE's sensitive index had tasted its six-week closing high on Monday while the index has gained almost four percent since February 26 when the Union Budget was presented in the Parliament. Experts said that the valuations are looking stretched at these levels and any further up-move from hereon would be a remote possibility. The markets shrugged off sluggish global cues in early trades to inch higher after flat start. The morning rally was led by the big boy Reliance Industries (RIL). Some media reports were there that the company is likely to discover hydrocarbon in the Cauvery basin. Meanwhile, investors preferred to book profit in late morning trades on the scepticism over sustenance of higher gains in equities in the absence of any major positive trigger. The markets remained downcast till late afternoon trades. Some last hour value picking helped the indices to sign out trade off the day's lows. The broader indices underperformed their larger counterparts and ended in the negative terrain.  Shares from technology, software and healthcare space played a spoilsport for the markets while oil & gas, fast moving consumer goods and realty stocks edged higher in trade. NMDC shares, after a big correction recently, observed bargain hunting from market participants as its follow-on public offering (FPO) opened for subscription. The company received bids for 2.86 crore shares. Out of this, bids for 184,400 shares have been received at cut-off price. Finally the BSE Sensex gained 45.79 points or 0.27% to end at 17,098.33 while the S&P CNX Nifty added 14.75 points or 0.29% to shut shop at 5,116.25.

The US markets once again closed with modest gains on Wednesday. The indices inched higher on the report of drop in companies' inventories on the same time the Bank and technology shares moved up on hopes, a revival in business demand will boost corporate profits, though there was some cautiousness ahead of an inflation report in China. The Commerce Department said that wholesale inventories fell 0.2 percent in January after dropping 1 percent in December while Companies' sales rose 1.3 percent, the 10th straight gain. The Dow Jones Industrial Average was up by 2.95 points, or less than 0.03%, to 10,567.33. The S&P 500 index added 5.16 points, or 0.45%, to 1,145.61 while the Nasdaq composite index closed higher by 18.27 points, or 0.78%, to 2,358.95, an 18-month high.

Crude prices inched higher on Wednesday to its eight week closing high despite the Energy Information Administration's data for the week to March 5 showing a 1.4 million barrel crude stock build, the sixth rise in a row. But the positive sign of the report was surprise drawdown of 2.9 million barrels for gasoline and a more-than-expected drop of 2.2 million barrels for distillates. Also the weakness in dollar against other major currencies was supporting the crude prices.Benchmark crude for April rose 60 cents to settle at $82.09 per barrel after trading in a range of $80.81 to $83.03 on the New York Mercantile Exchange. In London, April Brent crude settled up 57 cents, or 0.71 percent, at $80.48 a barrel.

The Indian rupee surged again on Wednesday underpinned by the gains in regional markets. The rupee started strong as the regional equity markets and the currencies were trading high. The dollar that turned stronger in overnight trade went slightly weaker against the regional currencies. The strength in rupee was being expected in view of the FPO of NMDC that kicks started and foreign investors' interest was expected in the issue. The rupee pared some of its gains in mid session when the local equity markets turned choppy but later recovered. Finally the rupee closed at 45.38/39, 25 paise stronger compared to its Tuesday's close of 45.63.

The FII on Wednesday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 3730.10 crore against gross sell of Rs 1959.90 crore, while in the debt segment the gross purchase was of Rs 1682.30 crore with gross sales of Rs 1095.90 crore.

The US markets again remained in a cautious mood and closed with marginal gains, though the trade remained cautious but the report of decline in inventories for companies' showed that now the companies will have to work for restocking. The Asian markets have made a good start and barring few, all the indices are trading in positive terrain. The domestic markets closed with modest gains in previous session lacking any cues. Today the indices are likely to get a positive start as is being indicated by the global sentiments. Though, the consolidation mood is likely to persist with scrip specific movement for the day.

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

Nifty Top volumes

• Unitech Wireless is looking to raise Rs 9000 crore to Rs 10000 crore through debt to expand its mobile telephony operations in the country.
• Bharti Airtel's $10bn acquisition financing to fund its takeover of Zain Africa is on the verge of being finalized.
• Cairn India will kick off a new study this year on enhancing its oil reserves in Rajasthan by as much as 25%.
• Jindal Steel might lose mining rights in Bolivia as the company failed to make necessary investments asked by the Bolivian government.
• SAIL has said that it will increase its annual production capacity in a phased manner, taking it to 26 million tonnes by 2014.

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