Local equity markets snapped the two-day losing streak on Monday prompted by the higher-than-expected gross domestic product (GDP) number for the second quarter of the current fiscal and good gains in the key Asian markets. The United Arab Emirates agreed to support its banking system which enhanced the market sentiment across the globe. Besides, confidence booster from the Indian government after panic selling last week lured investors for bottom fishing which resulted in gap-up opening in the key benchmark indices in the morning. GDP of 7.9% for September quarter, better than market expectations came as an icing on the cake for the domestic equities. But weakness in the most of the European markets hindered the bulls from extending gains in the latter part of the day. The 50-share Nifty managed to settle above the 5000-mark as investors sensed investment opportunity in metal, technology and software counters. Finally, the BSE Sensex soared 294.21 points or 1.77% to settle at 16,926.22, while the S&P CNX Nifty advanced 90.95 points or 1.84% to shut shop at 5032.70.

The US markets closed higher on Monday amid the worries of decline in holiday shopping. It was a volatile trade but the late rebound in financial shares on hopes that Dubai's debt woes won't have much impact, supported the markets to close in green. The market also drew some support from an unexpected improvement at factories. The Chicago Purchasing Managers index, which measures Midwestern manufacturing, rose to 56.1 in November from 54.2 in October. The Dow Jones Industrial Average rose 34.92 points, or 0.34%, to 10,344.84. The broader S&P 500 index was up by 4.14 points, or 0.38%, to 1,095.63, and the Nasdaq composite index closed marginally higher by 6.16 points, or 0.29%, to 2,144.60.

The crude prices rose on Monday, taking cue from the Iran's announcement that it will build 10 uranium enrichment plants and had restructured its naval forces for operations in the Persian Gulf in the event of a conflict. On the same time Britain said a racing yacht carrying five UK nationals had been stopped by Iranian naval vessels and that they are now being held in Iran. Benchmark crude climbed $1.40 to $77.45 a barrel on the New York Mercantile Exchange after being mostly flat for much of the session. In London, Brent crude for January delivery rose $1.61 to $78.79 on the ICE Futures exchange.

The Indian rupee after making a valiant effort of recovery in previous session rallied on Monday taking cue from the surge in the equity markets. The domestic markets were in jubilant mood since morning as the regional stock markets were showing splendid sign of upmove. On the same time the dollar declined again, against other major currencies after the Dubai debt crisis eased. The rupees closed at 46.54, 11 paise stronger compared to its Friday's close of 46.65.

The FII on Monday were the net sellers in both equity as well as debt segments. In equity segment the gross buying was of Rs 1420.80 crore against gross sell of Rs 2151.10 crore, while in the debt segment the gross purchase was of Rs 206.10 crore with gross sales of Rs 458.00 crore.

The US markets closed modestly higher on Monday supported by the gains in financial stocks, while the Asian markets have made a mixed opening with some indices trading marginally in red .The Indian markets closed higher with the news of a GDP growth of 7.9% in the second quarter, the figures were much better than expected and gave much needed momentum to the markets. The telecom sector that was in subdued mood for last couple of weeks too made headway. Today the global cues are indicating for a flat to marginally positive start, the auto sector will see some action as the November month auto sales figure are going to be announced today while the banking stocks will be in pressure with the apprehension of rate rise.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                               Nifty Top volumes

• Power Grid (PGCIL) has sought exemptions in audit procedures from the CVC, to be able to compete with private players after January 2011.
• Bharti Airtel has bagged the 'Best Global Wholesale Carrier for 2009' award at the Telecoms World Awards Middle East held in Dubai.
• In its bid to join the environment-friendly trend, Tata Motors is planning to manufacture hybrid versions of its Nano.
• L&T has entered into a joint venture with NPCIL to manufacture ultra-heavy forging and special steels used in nuclear power reactors.
• ONGC has announced the finding of a new oil reserve in Gujarat that could raise its onshore oil production by 20%.