If the Nifty manages to close above 5,930 the upmove may gain strength
 

After a break of a day on account of Mahatma Gandhi Jayanti, the market opened with a gap up and continued to rally throughout the session. It closed almost near the day’s high. The Sensex  which opened at 19,586 moved up from the level of 19,584 to 19,929 and closed at 19,902 (up 385 points or 1.97%) while the Nifty opened at 5,819 and after hitting a low of 5,803 it moved up gradually to hit a high of 5,918 and closed at 5,908 (up 130 points or 2.24%). The National Stock Exchange (NSE) recorded a higher volume of 61.70 crore shares.

Except for FMCG (down 0.76%) all the other indices on the NSE closed in the positive. The top five gainers were Metal (3.94%); Media (3.68%); Bank Nifty (3.44%); Commodities (3.20%) and Finance (2.86%).

Of the 50 stocks on the Nifty, 48 ended in the green. The top five gainers were Sesa Goa (7.28%); Jaiprakash Associates (6.58%); Ambuja Cements (6.19%); Axis Bank (5.62%) and Bank of Baroda (5.27%). While the only two losers were Hindustan Unilever (1.81%) and ITC (1.15%).

Fitch Ratings has warned India that any slippage on its policy front would have negative implications for its ratings, currently at the lowest investment grade. It also cautioned India that there is much capital still left which could outflow from the country.

Indian banks will get additional capital to provide loans at lower interest rates for purchases of two-wheelers and other consumer durables, the finance ministry said in a statement on Wednesday. The move is aimed at stimulating demand. It has also decided in principle to inject Rs140 billion in state-run banks in this fiscal year, it added.

US indices closed in the negative on Wednesday although well off the day’s lows. The US government has been in partial shutdown after lawmakers failed to agree on a federal budget. House Speaker John Boehner told reporters that Obama repeated he wouldn't negotiate about passing a funding bill. The government shutdown would continue for a third day on Thursday.

A report showed companies added fewer workers than projected in September, indicating the job market is struggling to gain momentum. The 166,000 increase in employment followed a revised 159,000 rise in August that was smaller than initially estimated, according to the ADP Research Institute in Roseland, New Jersey.

Moody's Investors Service lowered its outlook on Brazil's sovereign rating to stable from positive, citing deteriorating debt and investment ratios and evidence the economy is going through a low-growth period.

The exchanges of South Korea and China remained closed today. Except for Nikkei 225 (down 0.09%) and Straits Times (down 0.25%), all the other Asian indices ended in the green. The Taiwan Weighted Index was the biggest gainer, rising 1.73%. China's official non-manufacturing Purchasing Managers' Index rose to a six-month high of 55.4 in September from 53.9 in August, adding to a growing roster of evidence that China's economy has turned a corner in recent months.

The Philippines won a rating upgrade from Moody's Investors Service, completing the nation's ascent to investment rank as President Benigno Aquino leads a growth resurgence that's outpacing the rest of Southeast Asia. The rating on the nation's government debt was raised one level to Baa3, Moody's said in a statement today. The outlook on the rating is positive. The upgrade puts the Philippines on par with Turkey and Spain.

European indices are trading in the positive while the US market opened lower.

Euro-area services output expanded more than initially estimated in September, as the 17-nation currency bloc's economic recovery gained momentum. An index based on a survey of purchasing managers in the services industry rose to 52.2, exceeding a Sept. 23 estimate of 52.1 and up from 50.7 in August, London-based Markit Economics said today. The gauge has been above 50, indicating growth, for two months.