Domestic equity markets shut shop with good gains for the second day in a row on Wednesday underpinned by the strong global cues. Investors across the globe kept the worries about the European debt crisis aside as European Union (EU) finance ministers agreed to provide a month's time to debt-laden Greece to show improvement. Back home, the markets got off to a flying start tracking up-moves in the other Asian stocks and positive close for the US indices in overnight trade. But after remaining rock solid for the first half of the day, the key indices came off their day's highs as marketmen resorted to profit booking at higher levels. Positive start for the European markets again triggered buying in the local shares in the late afternoon trades. The markets remained extremely volatile in the second half of the day. The NSE's 50-share Nifty regained the crucial 4900-mark. Consumer durables, metal and banking stocks had good outing in trade while realty and information technology stocks failed to hold on to their early gains and finished lower. Higher metal prices on the London Metal Exchange (LME) lifted sentiments for the metal counters in trade. Tata Steel zoomed almost six and a half percent in trade as the company posted its first consolidated profit in four quarters for the three months ended on December 31, 2009. Telecom major Bharti Airtel too was in focus after the company's chief Sunil Mittal strongly defended the proposed acquisition of the African assets of Kuwait's Zain group. Finally, the BSE Sensex advanced 202.23 points or 1.25% to end at 16,428.91 while the S&P CNX Nifty rallied 58.25 points or 1.20% to settle at 4914.

The US markets closed modestly higher on Wednesday on the back of a stream of good news. There were encouraging corporate reports coupled with good economic indicators. Minutes released from the Federal Reserve's last meeting suggest that policymakers remain cautious but that they expect the swelling unemployment rates will begin to fall next year. The Commerce Department said construction of homes and apartments rose to an annual rate of 591,000 in January, better than what analyst have expected. Also Deere & Co. and Whole Foods Market Inc. reported better than expected profit numbers and raised their forecasts. The Dow Jones Industrial Average rose 40.43 points, or 0.39%, to 10,309.24. The Standard & Poor's 500 index added 4.64 points, or 0.42%, to 1,099.51, while the Nasdaq composite index gained 12.10 points, or 0.55%, to 2,226.29.

Crude prices moved slightly higher on Wednesday on upbeat report from the economy front. Though it was a choppy trading and volume remained low but the crude prices took encouragement from Federal Reserve's optimism that the unemployment will start receding. Benchmark crude for March delivery rose 32 cents to $77.33 a barrel on the New York Mercantile Exchange after trading in a range of $76.53- $77.82 a barrel. London Brent crude for April settled at $76.27 a barrel, up 59 cents.

The Indian rupee extended its gains on Wednesday on the back of decline in dollar. The domestic currency made a bullish start tracking the good gains in the regional equity markets and when the local equity markets too continued their momentum the rupee got momentum and surged in its intraday trade to touch its two week high of 45.95, its highest since February 3.The rupee got extra support from the broad fall in the dollar against other major currencies while the euro steadied on Wednesday to hold sharp gains made in the previous day trading. Finally the rupee closed at 46.12, 9 paise higher compared to its Tuesday's close of 46.21/22.

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 1181.30 crore against gross sell of Rs 924.30 crore, while in the debt segment the gross purchase was of Rs 131.20 crore with gross sales of Rs 92.50 crore.

The US markets moved slightly higher on the back of some good economic reports and encouraging corporate earnings. The Asian markets have made a mixed start and some of the indices are trading marginally in red. The domestic markets continued their rally in the previous session encouraged by the global cues. Today the indices are likely to make a flat start on not so supportive cue and show some consolidation in later trade. Cement sector is witnessing demand rise and may continue to remain in lime light while the fear of excise sop cut for cars may put the sector in pressure.

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

                                                          Nifty Top volumes

• The government has offered all help possible Bharti Airtel see through the acquisition of Kuwait-based Zain's telecom operations in Africa.
• Tata Steel has reported a consolidated net profit decline of 42% to Rs 472 crore versus Rs 814 crore in the same quarter last fiscal.
• SAIL will commission the Rs 15,000-crore expanded production line of its Bhilai unit by the end of FYཉ.
• Temasek Holdings Pte, Singapore's state investment firm has reduced its stake in ICICI Bank to 5.9 percent as of September 29.
• Reliance Industries may be forced to raise its offer for LyondellBasell or abandon its bid all together after the target settled a dispute with creditors that paved the way for an exit from bankruptcy.

Tata Motors, part of the salt-to-auto conglomerate Tata Group, is looking to raise prices of its commercial vehicles (CVs) in the range of 1-2% of the total cost. The proposed move will help the auto major to keep its profit margin inta...