The indices are still possibly gathering energy for a short upmove,  but will it last?

The benchmark indices in India moved Friday almost in the same narrow range as Thursday and managed to close marginally higher. The market opened with high optimism, following a rally in the US markets but soon lost steam. The BSE 30-share Sensex opened at 21,824 while the NSE 50-share Nifty opened at 6,515. Both the indices immediately hit their respective high at 21,870 and 6,523, respectively. Sensex hit a low of 21,730 and closed at 21,754 (up 14 points or 0.06%) while Nifty closed at hit a low of 6,486 and closed at 6,493 (up 10 points or 0.16%). The NSE recorded a higher volume of 73.19 crore shares.

A panel headed by Reserve Bank of India (RBI) deputy governor Urjit Patel recommended in January moving to an inflation target, with an aim to eventually bring down consumer-price based inflation to 4% with a 2% band on either side. However, the Reserve Bank of India Governor Raghuram Rajan said that the central bank has not yet moved to an inflation target, and was still exploring the suggestions on the subject drafted by a panel with the government.

US indices closed in the green on Thursday. The number of Americans filing new claims for unemployment benefits rose less than expected last week. Initial claims for state unemployment aid increased 5,000 to a seasonally adjusted 320,000 last week, the Labor Department said.

Fitch Ratings on Friday affirmed the United States' credit ratings at "AAA" with a stable outlook, removing the distant danger that it might downgrade the world's largest economy. The action resolves the negative watch that Fitch had placed on the United States back in October, when political wrangling over the debt ceiling had raised the risk of default. Fitch said the latest crisis over the debt limit had not adversely affected US Treasury yields or the appetite of foreign investors for the debt. "Therefore Fitch does not believe the role of the US dollar, sovereign financing flexibility or debt tolerance has been materially damaged," it said.

Except for NZSE 50 (down 0.69%) and Taiwan Weighted (down 0.23%) all the other trading Asian indices closed in the positive. Shanghai Composite (2.72%) was the top gainer.

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

Standard & Poor’s and Fitch Ratings cut Russia’s credit outlook to negative after the US penalised officials and business leaders named as having ties to Russian President Vladimir Putin.

Greece's credit rating was maintained at six steps below investment grade by Standard & Poor's, which said the country's debt remains large even as its government's fiscal performance improves. The country's long-term local currency debt was kept at B-, with a stable outlook, S&P said in a statement.