US markets rebounded off of 12-year lows after the Obama administration launched its mortgage-rescue plan to stem mortgage defaults. The trigger for the US market rally yesterday was the mortgage rescue plan which the Obama administration launched. The $ 75 billion housing plan is aimed at keeping upto 9 million borrowers in their homes.
The market shrugged off a bleak beige-book report and the drag of General Electric. According to the Fed’s beige book, the Fed does not expect a significant economic recovery until late 2009 or early 2010.
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Meanwhile, the ISM services index for February dipped to 41.6% from 42.9%, indicating continued contraction for the services sector. In other economic news, mortgage applications fell for a second straight week. Meanwhile, private employers slashed 697,000 jobs from payrolls in February.
At closing bell, the Dow Jones gained 2.2%, to close at 6,875.84. The S&P 500 dropped 2.4% but finished above the 700 mark at 712.87. The Nasdaq gained 2.5%.
Indian ADRs rallied on Wednesday. In Banking space, ICICI Bank was up 4.04% at $ 11.58 and HDFC Bank was up 3.86% at $ 50.61. In Telecom space, MTNL was up 4.12% at $ 2.53 and Tata Communication was up 3.85% at $ 15.65.
In IT space, Wipro was up 7.09% at $ 5.74, Infosys was up 4.33% at $ 24.08, Patni Computers was up 5.57% at $ 4.55. However, Satyam Computers ended down 1.50% at $ 1.31.
In other sectors, Tata Motors was up 9.85% at $ 3.57, Sterlite Industries was up 8.76% at $ 4.84 and Dr Reddy’s Labs was up 2.86% at $ 7.91.
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