The key benchmarks indices turned positive in afternoon trade led by gains in HDFC Bank and Hindalco Industries. The BSE 30-share Sensex was rose 58.40 points or 0.36%, up 152.99 points from the day's low and off 40.55 points from the day's high. Selling in Larsen & Toubro, however, arrested sharp gains. The Sensex regained the psychological 16,000 mark. The barometer index had alternately moved above and below that level earlier in the day.

The market was volatile. The market pared gains soon after a firm start triggered by higher Asian stocks. The market slipped into the red in early trade as US index futures fell. The market cut losses in morning trade. It moved between the positive and negative terrain after recovering sharply from the intraday lows in mid-morning trade. The market once again cut losses after weakening in early afternoon trade

Most Asian stocks rose on reports Europe was close to bailing out debt-strapped Greece, coaxing investors back to riskier assets. The key benchmark indices in China, Japan, Hong Kong, Indonesia and Taiwan rose by between 0.13% to 1.14%. But the key benchmark indices in, Singapore and South Korea fell by 0.02% to 0.11%.

Chinese exports and imports rose strongly in January 2010 from a year earlier. Exports were up 21% in January after a 17.4% rise in December. Imports surged 85.5%.

Trading in US index futures indicated a flat opening of US stocks on Wednesday, 10 February 2010.

US stocks surged on Tuesday, 9 February 2010 on optimism that help was on the way for Greece to deal with its heavy debt burden. The Dow Jones Industrial Average added 150.25 points, or 1.5%, to 10,058.64. The broader Standard & Poor's 500 Index gained 13.78 points, or 1.3%, to 1,070.52, the Nasdaq Composite Index gained 24.82 points, or 1.2%, to 2,150.87.

German Finance Minister Wolfgang Schaeuble plans to brief lawmakers today on steps he may take to support the Greek government before the European Union holds a summit tomorrow. Olli Rehn, who takes over as European Economic Affairs commissioner tomorrow, said Greece has to 'do the necessary measures' in exchange for European Union's support.

Closer home, Finance Minister Pranab Mukherjee said on Wednesday that the economy could grow at around 7.75% in the 2009/10 financial year ending in March. With latest GDP data on 2009/10 indicating 7.9% growth in the second quarter, the growth outlook for the next two quarters and for the whole year is expected to be in the upper bound range of more predictions for the Indian economy, he said in a speech.

The government said on Monday the economy would grow 7.2% this fiscal year, picking up from a six-year low the previous year and underlining expectations that the Reserve Bank will raise rates in coming months. The government may announce steps to unwind its stimulus measures in the annual 2010/11 budget presentation on 26 February 2010 as a recovery in Asia's third-biggest economy shows a more solid footing. The Central Statistical Organisation forecast said manufacturing, a key growth driver, would grow 8.9%, a sharp pick up from 2.4% in the previous year.

Farm output would contract 0.2% after the worst monsoon in 37 years, swinging from year-earlier growth of 1.6%. Still, the latest forecast is higher than a 2% contraction forecast by the prime minister's economic advisory commission in October 2009.

Last month, the RBI revised up its growth estimate for 2009/10 to 7.5% from 6% and lifted its forecast for wholesale price inflation to 8.5% from 6.5%. Indian policymakers, including the Prime Minister Manmohan Singh, have said they expect the economy to grow around 7.5% in the 2009/10 fiscal year. Earlier this moth, the International Monetary Fund forecast growth in 2009/10 of 6.75%.

The Reserve Bank of India (RBI) has already raised bank reserve requirements as it starts to withdraw its crisis measures and it has warned of mounting inflation pressures, setting the stage for rates to rise.

A day after commerce and industry minister Anand Sharma hinted at partial withdrawal of stimulus packages, the Prime Minister's economic advisory council (PMEAC) chairman, C Rangarajan, said on Tuesday the process of fiscal consolidation must start with the Budget. Rangarajan on Wednesday said the government could provide a roadmap for exiting from the fiscal stimulus when it presents its budget on 26 February 2010. He also the stimulus exit should be a gradual transition.

Industrial output data for the month of December 2009 which is due on Friday, 12 February 2010, is expected to rise 12% in December 2009 from a year earlier. A robust figure, ahead of the 26 February 2010 annual budget, would also allow the federal government, fighting a 16-year high fiscal deficit, to cut the deficit by phasing out fiscal stimulus. A strong rise would also help the central bank to focus better on containing inflation by raising interest rates in coming months. The industrial output rose 11.7% in November 2009.

Exports are reportedly likely to grow for the third consecutive month in January 2010, as per estimates of the commerce department, making the case for a possible withdrawal of the stimulus package for sectors that were doing well. The finance and commerce ministers are scheduled to meet later in the week to take a decision on the continuation of the stimulus package for exporters, commerce secretary Rahul Khullar has said. Exports grew 13% in January 2010 over a year ago he said.

Inflation numbers for the week ended 30 January 2010 will be out on Thursday 11 February 2010. Accelerating food inflation, largely because of a poor harvest and rising global commodity prices, has become a major concern for the government. Stock markets remains shut on Friday 12 February 2010 on account of Mahashivratri.

At 13:18 IST, the BSE 30-share Sensex was up 58.40 points or 0.36% to 16,100.58. At the day's high of 16,141.13, the Sensex rose 98.95 points in early trade. The Sensex lost 94.59 points at the day's low of 15,947.59 in morning trade.

The S&P CNX Nifty was up 20.90 points or 0.44% to 4813.55.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1786 shares advanced as compared with 840 that declined. A total of 84 shares remained unchanged.

The BSE Mid-Cap index rose 1.24% and the BSE Small-Cap index rose 1.54%. Both the indices outperformed the Sensex.

From the 30-member Sensex pack, 19 rose while the rest fell.

HDFC Bank (up 2.09%), Hindalco Industries (up 3.58%), Jaiprakash Associates (up 3.10%), Sterlite Industries (up 1.66%), DLF (up 1.65%), and Tata Steel (up 1.43%), were the top gainers from the Sensex pack.

Realty major DLF rose after the group executive director Rajeev Talwar said the company sold homes worth Rs 480 crore in January 2010.

Larsen & Toubro (down 0.76%), Sun Pharmaceuticals Industries (down 1.65%), Hindustan Unilever (down 1.14%), State Bank of India (down 0.88%), Tata Power Company (down 0.87%), and Mahindra & Mahindra (down 0.80%), were the top losers from the Sensex pack.

Index heavyweight Reliance Industries (RIL) fell 0.13%. Reliance Industries has reportedly halted fuel sales to Iran from May 2009. Media reports on Tuesday, 9 February 2010, had quoted Iranian Ambassador to India Seyed Madhi Nabizadeh as saying that the Islamic nation was continuing to import fuel from Reliance Industries.

Meanwhile, RIL recently submitted a $2 billion expression of interest for Value Creation Inc, a Canada-based private firm which holds oil sands assets.

State-run steel maker Steel Authority of India reversed early gains to decline 0.19% to Rs 207.70 after a steel ministry official on Wednesday said there was no proposal for a bonus share issue in the company, ahead of its follow-on share sale. The stock came off day's high of Rs 211.95 on the BSE.

Among other PSU stocks, Neyveli Lignite Corporation (up 2.81%), Hindustan Copper (up 2.72%), Central Bank of India (up 2.45%), NMDC (up 2.16%), Power Finance Corporation (1.87%), and Rural Electrification Corporation (up 1.83%), rose.

Dredging Corporation of India (down 1.26%), NTPC (down 0.47%), Punjab National Bank (down 0.36%), Indian Bank (down 0.31%), and MMTC (down 0.42%), were among the PSU stocks that declined.

Top gainers from the BSE's 'A' group were, GlaxoSmithKline Consumer Healthcare (up 8.92%), India Infoline (up 4.31%), Indiabulls Real Estate (up 4.09%), Voltas (up 3.86%), and Gujarat NRE Coke (up 3.80%).

Top losers from the BSE's 'A' group were, Cipla (down 1.75%), Sun TV Network (down 1.72%), Nestle India (down 1.27%), Shree Renuka Sugars (down 1.19%), and Dr Reddys Laboratories (down 1.18%).