The domestic markets finally made a decent closing on Tuesday, what started on a dull note lacking any global cues, turned cheerful in the last hours on the good European market cues. The local indices made a flat start and traded choppy for the most part of the day; once it seemed that the benchmarks will find it difficult to trade above their psychological mark,but from the second half buying started in selective counters and gradually became broad based leading the indices for a last hour rally. Prime Minister's statement to raise country's growth rate to the pre-crisis trajectory witnessed in FY04-FY08 period too seems to have provided morale booster for the markets. All the sectoral indices managed a green close on the bourses with metal, auto and IT, garnering the maximum gains. Meanwhile the stock specific movement kept the market buzzing and the benchmark's top loser of the previous session  'Bharti Airtel' continued its plunge for the second consecutive day, on the other hand cement sector stocks posted considerable gains. Airline stocks too were in the jubilant mood as OMCs announced a 2.5% cut in prices of aviation turbine fuel (ATF) on account of softening in global crude oil prices. Finally the BSE Sensex closed at 16,226.68, up by 188.33 points or 1.17% while the Nifty gained 53.80 points or 1.12% to close at 4855.75.

The US markets went for their biggest gains in a month after an extended weekend on Tuesday. Good corporate earnings and corporate deals led the markets for a rally. Investors who have been anxious in recent weeks about economic problems in Europe were able to put aside their concerns for the time being as European Union finance ministers have given Greece a month to show that it can make substantial progress in cutting its staggering budget deficit.Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported better than expected earnings, while Merck & Co. reported profit rise due to acquisition of its longtime partner Schering-Plough Corp. The Dow Jones Industrial Average surged by 169.67 points, or 1.68%, to 10,268.81. The Standard & Poor's 500 index rose 19.36 points, or 1.80%, to 1,094.87, while the Nasdaq composite index closed higher by 30.66 points, or 1.40%, to 2,214.19.

Crude prices surged on Tuesday following the rally in the stock markets and weakness in dollar as investors felt less of a need to stash their money in safer investments. Crude prices ended nearly 4 percent higher on optimism about the stabilization in economy and hope for better demand for oil. Benchmark crude for March delivery rose $2.88, or 3.89 percent, to settle at $77.01 a barrel, trading in a range of $73.71 to $77.28 on the New York Mercantile Exchange. In London, April Brent crude rose $3.17 to settle at $75.68 a barrel.

The Indian rupee continued to move higher on Tuesday, extending its previous session gains on the back of recovery in the stock markets and weakness in the dollar. The domestic currency made cautious starts lacking any cue from the global markets as most of them remained closed. The rupee gained strength in the afternoon as the local equity markets made a good come back. Rupee in its intraday trade touched its two week high of 46.13. Euro showed some strength on expectations that European finance ministers will stick to the rescue plan of Greece. Finally the rupee closed at 46.21/22, 11 paise higher compared to its Monday's close of 46.32/33.

The FII on Tuesday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 1628.60 crore against gross sell of Rs 1411.10 crore, while in the debt segment the gross purchase was of Rs 319.50 crore with gross sales of Rs 107.60 crore.

The US markets went for a rally after an extended weekend; investors set aside their worries of global economic recovery on good corporate results. Most of the Asian indices are trading today and have made a good start with some surging by more than one percent in early trade. The domestic markets sensed the good signs in the last hour of previous trading and are likely to continue their upmove today with good opening. In scrip specific movement Tata Steel is likely to see some action after reporting its consolidated profit numbers.

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

                                                          Nifty Top volumes

• Bharti Airtel is likely to finance the majority of the Zain's deal purchase price with foreign currency loans.
• Suzlon Energy's unit REpower AG has bagged order for supply of 26 wind turbines with a capacity of 52 megawatts.
• Tata Motors has forayed into combat vehicles for the defense sector with the launch of a mine protected vehicle.
• SAIL has commissioned a pipe coating plant at the company's Rourkela Steel Plant located in Orissa.
• RCom has placed an estimated Rs 340-crore order with China's Huawei Technologies for two million CDMA handsets.