A break in the 17,300-16,800 band will determine the direction

The market ended higher today; however, confusion exists in the street about the long-term sustainability of the rally as the crisis in the eurozone is yet to be resolved. The Sensex ended 95 points (0.5%) higher at 17,117 while the Nifty ended 25 points (0.5%) higher at 5,135. The indices started the day on a weak note taking cues from the Asian markets. The market started recovering in the early afternoon session and gained momentum on a strong start in European indices.

Asian indices settled mixed today. Key benchmark indices in China, South Korea, Singapore and Indonesia were up by 0.08% to 0.89% while markets in Hong Kong and Taiwan were down by 0.03% to 0.21%. In Japan, the Nikkei 225 average was down 0.13% after the country's ruling party selected finance minister Naoto Kan as Japan's new prime minister.

US stocks were up on Thursday, supported by a late-day rise in technology shares. The Dow was up 5.7 points (0.06%) at 10,255. The S&P 500 added 4.4 points (0.4%) to 1,103. The Nasdaq was up 22 points (0.9%) to 2,303. The US private sector created more jobs in May and the services sector increased payrolls for the first time in more than two years. In a separate report, the Labour Department said that US non-farm productivity grew at a 2.8% annual rate between January and March, the smallest advance in a year.

Back home, the monsoon activity is expected to regain next week after it was weakened by a cyclone. The monsoon rainfall was at 16.7 millimetres for the week ended 2nd June, down 11% from the normal weekly average of 18.8 millimetres.

India is likely to allow large consumers to keep larger stocks of sugar as prices keep dropping and supplies are likely to rise. The government had banned huge stocking by large consumers in February on poor domestic supply.

Foreign institutional investors were net buyers, purchasing stocks worth Rs406 crore on Thursday. Domestic institutional investors bought stocks worth Rs79 crore.

Bhandari Consultancy & Finance (down 4.9%) said that the Delhi High Court has directed that a meeting of the equity shareholders be convened on 10 June 2010, for the purpose of considering the Scheme of Arrangement between Sindhu Trade Links, Sindhu Holdings, Garuda Imaging and Diagnostic Pvt Ltd, Uttaranchal Finance, Parnami Habitat Developers, Suvidha Stock Broking Services Pvt Ltd, Reward Vinimay Pvt Ltd and Bhandari Consultancy & Finance along with their respective shareholders and creditors.

Modern India Ltd (up 0.2%) said that pursuant to the Bombay High Court order, Indian Institute of Jewellery Ltd, a wholly-owned subsidiary of the company, has been amalgamated with Modern India. Consequently, Indian Institute of Jewellery has been dissolved without being wound up on 3 June 2010.

Ceat (down 0.2%), which currently holds 54.84% stake in its Sri Lankan investment arm Associated Ceat Holdings Company Pvt Ltd, Colombo, has acquired the remaining 45,15,789 equity shares of the company. Consequently, ACHL has become a wholly-owned subsidiary of the company. ACHL holds 50% stake in Ceat Kelani Associated Holdings Pvt Ltd (CKAH), Colombo, a joint venture between ACHL and its Sri Lankan Partner, Kelani Tyres Ltd.

CKAH has three wholly-owned subsidiaries, which are engaged in manufacturing of tyres under the 'Ceat' brand.