Current upmove may take the Nifty to the level of 6,085, while the close below 5,990 may put the upmove on pause

On a higher volume of 64.90 crore shares on the National Stock Exchange (NSE) the Nifty was pulled up into the positive zone for the second consecutive session. The market opened weak but immediately went on an uptrend. The indices entered went into the green after 11 and remained there throughout the session, rising steadily. The benchmark closed near the day’s high.

The Sensex and Nifty opened lower at 19,918 and 5,893 respectively. After hitting a low of 19,827 and 5,877 the indices moved gradually up to hit a high of 20,278 and 6,016. Sensex closed at 20,249 (up 266 points or 1.33%) while the Nifty closed at 60,07 (up 79 points or 1.33%).

Except for MNC (down 0.09%) all the other indices on the NSE ended in the green. The top five gainers were Realty (4.62%); Bank Nifty (1.91%); Pharma (1.91%); Finance (1.76%) and Services (1.58%).

Of the 50 stocks on the Nifty, 40 ended in the green. The top five gainers were D L F (5.98%); Sun Pharma (5.73%); Jaiprakash Associates (4.35%); Kotak Mahindra Bank (4.02%) and I D F C (3.52%). While the losers were Wipro (1.54%); M&M (1.41%); Sesa Sterlite (1.02%); Cairn (0.68%) and BPCL (0.60%).

Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday said that the current account deficit (CAD) can be contained at $70 billion this fiscal. He also that he is working to turn investor sentiment positive for India to help boost GDP growth rate. Positive views by the governor on the Indian economy played on the market sentiments. He said the economy will only start getting better from now, reflecting a growing view that the economy has bottomed out. Rajan cited that rising exports, strong agricultural production and revival of stalled projects will aid in the recovery, and the law makers in the US would be able to arrive at a fiscal deal.

The provisional data released by the government today, 9 September 2013, showed that India's trade deficit narrowed sharply to $6.7 billion in September 2013 from $10.9 billion in August 2013. The September trade deficit is the lowest since March 2011. Merchandise exports rose by 11.15% year-on-year in September to $27.68 billion. Imports fell 18.1% year-on-year to $34.44 billion. Gold and silver imports fell by over 80% to $0.8 billion in September. Trade Secretary S R Rao said that government curbs on imports of non-essential items have been effective, adding that jewellery exports from India are likely to revive going ahead.

The International Monetary Fund (IMF) forecast economic growth for India to dip to 4.25% in the year to 31 March 2014 saying the economy would continue to underperform because of regulatory, infrastructural, and financing issues.

India will give non-banking financial companies (NBFCs) priority when awarding new commercial banking licenses as they already own an existing network of financial services in the country, central bank deputy governor KC Chakrabarty said on Wednesday.

US indices closed in the red on Tuesday. News making round that US President Barack Obama will today nominate Federal Reserve vice chair Janet Yellen to be the next head of the US central bank. Seen as a monetary policy dove, Yellen is considered more likely to maintain the Fed's current accommodative stance. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year.

The IMF cut its global growth forecast to 2.9% for 2013 from its July estimate of 3.1%. IMF sees a modest pickup next year to 3.6%. The cut in its forecasts for global growth yesterday it said US government default could “seriously damage” the world economy.

Except for KLSE Composite (down 0.47%), NZSE 50 (down 0.59%) and Taiwan Weighted (down 0.37%) all the other Asian indices closed in the green. Nikkei 225 was the top gainer, up 1.03%. South Korea's markets were closed today for a holiday.

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