US markets closed higher after initially plunging after the Fed decision was announced but soon recovered and rallied strongly. Encouraging economic news and a batch of reassuring earnings results ensured that the bulls were in charge on Wall Street. Third quarter GDP rose higher than estimates at 3.9%.

The Fed Funds rate now stands at 4.50%. Last month, the Fed surprised the market with a larger-than-expected half-point cut in the funds rate -- the rate banks charge each other for overnight loans. The Dow, which had dipped briefly into negative territory after the decision, rose 137.54, or 1%, to 13,930.01. Broader stock indicators also advanced. The Standard & Poor's 500 index rose 18.36, or 1.20%, to 1,549.38, and the Nasdaq composite index rose 42.41, or 1.51%, to 2,859.12. The Russell 2000 index of smaller companies rose 11.87, or 1.45%, to 828.02.

Treasury bond prices fell after the Fed's decision. The yield on the 10-year Treasury note, which moves inversely to its price, rose to 4.47% from 4.39% late Tuesday.


Indian ADRs end mixed; HDFC Bank up 6.5%, VSNL down more than 7%

Indian ADRs ended the day on a mixed note even as the US markets gained on the Fed's decision to cut interest rates. In the technology pack, Infosys Technologies was up 0.73% at $ 50.94, Patni Computers was down 5.84% at $ 21.11, Satyam Computers was up 2.85% at $ 30.35, while Wipro ended the day 3.52% higher at $ 16.47.

In the non-technology pack, HDFC Bank was up 6.55% at $ 139, VSNL was down 7.81% at $ 27.50, ICICI Bank was up 4.56% at $ 69.44, MTNL was down 2.65% at $ 9.20, Tata Motors was down 1.5% at $ 19.70, Dr Reddy's Lab was down 0.56% at $ 15.85 and Sterlite was up 4.09% at $ 25.97.