Local equity markets snapped the three-day losing streak with modest gains on Wednesday underpinned by the strong European markets and higher US index futures. Markets opened lower in the morning led by the bleak global cues and remained directionless for most part of the first half of the day. But good gains in the key European markets boosted sentiment among investors back home pulling the benchmark indices in the green in late afternoon trades. However, the undertone of the market remained cautious ahead of the decision from the US Federal Reserve Policy meeting. Market participants rushed for software, technology and metal stocks in trade while they turned their back for rate sensitive -- realty and banking stocks -- on the concerns of CRR hike from the central bank to curb rising inflation. Orchid Chemical shed more than 10% in trade after the company's decision to sell its injectables business to Hospira. Finally, the BSE Sensex gained 35.61 points or 0.21% to settle at 16,912.77, while the S&P CNX Nifty advanced 9 points or 0.18% to close at 5033.05.

The US markets came off their days high to close mixed on Wednesday, Dow declined marginally while S&P500 and Nasdaq managed a green close. The Fed's announcement that it will end several of its support programs next year made the investors cautious, though its decision to keep the interest rates near zero supported to prevent a steep decline. The Fed said it expects to wind down several emergency lending programs when they are set to expire next year. The Dow Jones industrial average lost 10.88 points, or 0.10%, to 10,441.12. On the other hand, the broader Standard & Poor's 500 index was up by 1.25 points, or 0.11% to 1,109.18 and the Nasdaq composite index closed up by 5.86 points, or 0.27%, to 2,206.91.

Crude prices continued its surge on Wednesday after the government said supplies of oil and petroleum products dropped much more than expected. Even the rise in dollar was unable to prevent a sharp rise in crude prices. The Energy Information Administration said that crude supplies fell by 3.7 million barrels last week and distillate fuels including heating oil dropped by 2.9 million barrels. Benchmark crude for January delivery surged by $1.97, nearly 3%, to settle at $72.66 a barrel on the New York Mercantile Exchange. In London, Brent crude for January delivery added $1 to $73.05 a barrel on the ICE Futures exchange.

The Indian rupee closed modestly higher on Wednesday, the rupee started weak as the regional stock markets were trading low but the Moody's upgrade of outlook on India's local currency to positive from stable referring to the country's strong external position  supported the rupee. Finally the rupees closed at 46.67, 5 paise stronger compared to its Tuesday's close of 46.72. Dollar's losses against other major currencies too supported the sentiment.

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 2295.40 crore against gross sell of Rs 2181.40 crore, while in the debt segment the gross purchase was of Rs 325.70 crore with gross sales of Rs 131.30 crore.

The US markets closed mixed on the concern of Fed taking back several of its support programs next year making the investors cautious. The Asian markets have made a mixed start and some of the indices are trading down by about 1%.The local indices made modest gains in previous trading after remaining in subdued mood for the most part of the day. Rate sensitive sectors were down on concerns of rate increase in view of rising inflation; all those sectors are likely to remain under pressure even today and the markets are likely to make a flat to soft start. The buzz of the markets today will be the decision of the country's top two stock exchanges to advance their timings by 55 minutes, to 9 am from Friday.  

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

                                                          Nifty Top volumes

• Idea Cellular has posted its finest performance in terms of monthly additions with 2.5 million new users in month of November.
• Tata Steel's European unit Corus had got a 350 million euro contract to supply rail tracks to French operator SNCF.
• DLF's board has approved acquisition of Caraf Builders & Constructions that owns DLF Assets (DAL) from promoters KP Singh family.
• ONGC has incurred a huge loss of Rs 4,745 crore in revenues on selling natural gas at the government-controlled rate.
• Bharti Airtel is all set to acquire 70% stake in Warid, the fourth largest mobile company in Bangladesh.