RTTNews - The Indian market is likely to open on a firm note Wednesday after strong economic data from the U.S. suggested that the U.S. economy is emerging from the longest recession since the 1930s. Short covering ahead of the F&O expiry may also help extend a 4-day rally.

On Wall Street, stocks finished modestly higher on Tuesday, as better-than-expected economic reports on housing prices and consumer confidence and news of Ben Bernanke's reappointment as the Fed Chief for a second term generated some upbeat sentiment. While the Dow and the Nasdaq closed up around 0.3% each, the S&P 500 index rose 0.24%.

The Indian ADRs also closed mostly higher. Wipro advanced 2.2%, Satyam Computers rose 1.87%, Infosys gained 1.7%, ICICI Bank added 1.16% and HDFC Bank edged up 0.61%, but Sterlite Industries slipped 0.15% and Reddy's Laboratories ended down 0.67%

Meanwhile, oil prices turned sharply lower on Tuesday as traders took profits after a recent rally despite positive home prices and consumer confidence reports. Light sweet crude for October delivery dropped to $72.05, losing $2.32 or over 3 percent on the session.

The rupee ended at 48.75/76 against the dollar, off the day's low of 48.82/84 but weaker than Monday's close of 48.61/62 on Tuesday, weighed down my month-end dollar demand from oil refiners and importers

In corporate news, Indiabulls Power, a unit of listed Indiabulls Real Estate is likely to announce a pre-IPO placement this week to raise Rs 410 crore from a group of banks and financial institutions, reports suggest.

Cost-cutting initiatives will help bring down operating costs at Jaguar Land Rover, Tata Motors' chairman Ratan Tata said at it annual general meeting on Tuesday.

United Spirits and the world's largest liquor company, Diageo, have called off their strategic talks over stake sale citing differences over valuation, reports said.

Consumer durable and auto stocks could be in the spotlight on reports the government would release the balance 60 percent of revised pay arrears of about Rs.17,500 crore to around 50 lakh government employees by the end of September.

Aban Offshore said it has signed for the deployment of 3 new-build jack-up rigs in the Middle East for a period of 3 years each. The estimated revenues from the contract is approx. $603 million or Rs.2,925 crore.

Pyramid Saimira Theatre said that its board of directors had considered and approved the raising of funds up to $100 million through an international offering of securities.

On Tuesday, the benchmark BSE Sensex initially fell 1.3% in the afternoon before recovering sharply to finish modestly higher at 15,688, up 60 points or 0.38% from its previous close, while the S&P CNX Nifty rose 17 points or 0.36% to 4,659. The BSE mid-cap index moved up 0.58% and the small-cap index advanced 1.50%, outperforming large-caps. The market breadth on the BSE was fairly positive, as gainers outnumbered losers by 1677 to 1064, with 75 stocks closing unchanged.

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