Until Nifty closes below 6,315, the upmove would continue

Taking cues from the Asian counterparts, the Indian indices on Thursday made gradual upmove and closed at their all time high. The BSE 30-share Sensex opened at 21,336 while NSE 50-share Nifty opened at 6,345. After hitting the day’s low almost at the same level, both the indices edged higher to hit a high of 21,525 and 6,407. Sensex closed at 21,514 (up 237 points or 1.11%) while Nifty closed at 6,401 (73 points or 1.15%). The NSE recorded a huge volume of 74.49 crore shares.

India's current account deficit (CAD) narrowed sharply to $4.2 billion (0.9% of GDP) in Q3 of 2013-14 from $31.9 billion (6.5% of GDP) in Q3 of 2012-13 which is also lower than $5.2 billion (1.2% of GDP) in Q2 of 2013-14. The lower CAD was primarily on account of a decline in the trade deficit as merchandise exports picked up and imports moderated, particularly gold imports. The data was as per the preliminary data on India's balance of payments (BoP) for the third quarter (Q3), from October-December 2013, of the financial year 2013-14, presented by Reserve Bank of India in Statements I and II.

On a BoP basis, merchandise exports increased by 7.5% to $ 79.8 billion in Q3 of 2013-14 (3.9% in Q3 of 2012-13) while on the other hand, merchandise imports at $ 112.9 billion, recorded a decline of 14.8% in Q3 of 2013-14 as against an increase of 10.4% in Q3 of 2012-13. As a result, the merchandise trade deficit (BoP basis) contracted by around 43% to $33.2 billion in Q3 of 2013-14 from $58.4 billion a year ago.

US indices closed flat on Wednesday. US companies added 139,000 workers in February, fewer than the market estimates, a report from the ADP Research Institute in Roseland, New Jersey showed. Separate data indicated that service industries in the US expanded in February at the slowest pace in four years. The Institute for Supply Management's non- manufacturing index slipped to 51.6 in February from 54 the previous month.

Federal Reserve Chair Janet Yellen vowed on Wednesday to do all that she can to boost the US economy that is running well short of the central bank's objectives.

Richard Fisher, president of the Federal Reserve Bank of Dallas, on Wednesday said he was concerned about "eye-popping levels" of some stock market metrics, and said the central bank has to monitor the signs carefully to make sure another bubble isn't forming.

All the Asian indices closed in the green. Nikkei 225 (1.59%) was the top gainer.

Business activity across emerging markets expanded in February at the slowest pace in five months, weighed down by weaker manufacturing in big developing countries such as Russia and China, a survey showed on Thursday.

HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the third month running to 51.1 in February. It stayed under the 2013 average of 51.7 and well below a long-run level of 54.0.

Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed Chinese factory output stayed below the 50 mark. Manufacturing in Russia, India and Brazil hovered just above 50.

European indices were trading in the green while US Futures were trading marginally higher.

A two-day meeting of Bank of England's Monetary Policy Committee (MPC) ends today, 6 March 2014, to decide interest rates in UK. Policy rates are expected to remain unchanged at record low.

UK house-price growth accelerated in February to the fastest in almost five years as the economic recovery strengthened, boosting demand for property.