Only a close below 6,270 on the Nifty tomorrow would mean a reversal of the trend

Although the Indian stock market opened Wednesday in the positive, it went into the red two hours later. After trading in the red for about an hour the benchmark made a gradual recovery and closed almost at the level at which it had opened for the day.

The BSE 30-share Sensex opened at 21,280 and moved in the range of 21,176 and 21,333 and closed at 21,277 (up 67 points or 0.32%) while the NSE Nifty opened at 6,328 and moved between 6,288 and 6,336 and closed at 6,329 (up 31 points or 0.49%). The NSE recorded a higher volume of 62.50 crore shares.

The Election Commission has announced the dates for 2014 Lok Sabha elections. The polls will be held between 7 April 2014 and 12 May 2014 on nine days.

Private sector output across India rose for the first time in eight months during February. The seasonally adjusted HSBC India Composite Output Index posted 50.3 in February 2014, higher than 49.6 in January 2014, indicating a fractional rate of expansion. Adjusted for seasonal influences, the headline HSBC Services Business Activity Index rose from 48.3 in the previous month to 48.8 in February. This was consistent with a slight rate of contraction, and one that was the slowest in the current eight-month period of reduction, Markit Economics said. Sector data indicated that four of the six monitored categories recorded falling business activity, with the fastest decrease noted in Financial Intermediation.

India's exports will not be able to achieve the target of $325 billion in the current fiscal and will fall short by about $10 billion, Federation of Indian Exports Organisation (FIEO) said. The country's merchandise exports would touch $312-315 billion by the end of this fiscal, ending March 31. Finance Minister P Chidambaram in the interim budget speech had said that India's exports are foreseen to grow by 6.3% to $326 billion during the current fiscal.  "The government should not fix annual targets for exports. We should fix a target for five years and work accordingly," FIEO President Rafeeq Ahmed says.

State-run banks' bad loans are anticipated to be slightly higher by March-end from a year earlier, Finance Minister P Chidambaram said on Wednesday after reviewing their quarterly performance. He added that banks recovered bad loans worth Rs18,933 crore during April to December 2013.

US indices closed sharply higher on Tuesday. The US economy will grow this year at its fastest pace since 2005, helping reduce the annual average unemployment rate for a fourth straight year even as market borrowing costs rise, the Obama administration predicted. Gross domestic product will expand 3.1% in 2014 after rising 1.9% last year, the administration said in forecasts accompanying its 2015 budget plan released in Washington. The jobless rate will average 6.9% this year, compared with 7.4% last year, and average 6.4% in 2015, according to estimates based on information as of mid-November.

Except for Shanghai Composite (down 0.89%) and Hang Seng (down 0.34%) all the other Asian indices closed in the green. Jakarta Composite (1.26%) was the top gainer.

The HSBC China services Purchasing Managers' Index rose to 51 in February from 50.7 in January, HSBC Holdings PLC said on Wednesday.

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

UK services expanded for a 14^th month in February as an index of employment rose and confidence increased to the highest level since September 2009.

A Purchasing Managers’ Index was 58.2 compared with 58.3 in January. Manufacturing and construction both grew in February and Markit said today that those reports, combined with today’s services reading, indicate the economy is expanding at a pace of about 0.7% in the first quarter. In the Euro area, services output expanded faster than initially estimated in February, as Germany boosted growth to the strongest in almost three years. Markit’s index for the region rose to 52.6, compared with a provisional reading of 51.7. The gauge was 51.6 in January. A composite index of manufacturing and services increased to 53.3.