Domestic equity markets signed off 2009 on a bullish note on Thursday prompted by the strong global cues. It was a perfect finish to the spectacular year of trade during which the key indices rallied over 70% each. Markets started the day on a strong footing led by the gains in most of the Asian markets and remained in a jubilant mood throughout the day except for some jitters towards the end of the session. The benchmark indices -- Sensex and Nifty -- touched their new 52-week highs of 17,530.94 and 5221.85, respectively. Volatility was at a higher side during the entire session as F&O traders rolled over their positions to next month contracts. Encouraging comments from the Finance Minister Pranab Mukherjee that there will be no early exit from expansionary policy helped the markets to shrug off rising food price inflation. Power, capital goods and consumer durables stocks were the major growth drivers for the markets while shares from fast moving consumer goods, healthcare and realty sectors witnessed some profit booking in trade.The broader indices, after remaining in a buoyant mood during most part of the day, pared some of their gains in late trades. Finally, the BSE Sensex gained 120.99 points or 0.70% to close at 17,464.81, while the S&P CNX Nifty advanced 31.60 points or 0.61% to settle at 5201.05, its highest closing since February 2008.

The US markets closed lower on Thursday, the last trading day of the year but managed their best year since 2003 as they recovered from the financial crisis and recession. Being the last trading day and holiday ahead, volumes remained thin and exaggerated the market's moves. News of drop in weekly unemployment claims, to the lowest level since July 2008 gave stocks an initial spurt, but the market gave back the gains as traders took some profits to close out their books. The Dow Jones industrial average lost 120.46 points, or 1.14%, to 10,428.05. The broader Standard & Poor's 500 index fell 11.32 points, or 1.00%, to 1,115.10 and the Nasdaq composite index closed lower by 22.13 points, or 0.97%, to 2,269.15.

Crude prices inched higher on the last trading day of the year and ended 2009 with a bang, surging by about $10 a barrel in the last two weeks. It was the weakness in dollar that led the rise in crude prices, also the government report that new claims for unemployment benefits dropped unexpectedly last week helped the prices go up. On Thursday benchmark crude for February delivery added 8 cents to settle at $79.36 a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery lost 10 cents to settle at $77.93 a barrel on the ICE Futures exchange.

The Indian rupee closed almost flat on Friday, the domestic equity markets were closed along with other regional markets so there was not much cue for the domestic currency to move. The rupee traded in a narrow range and closed with marginal gains. Though the dollar gained strength overseas and rose to its highest level in last three months against Yen. Finally the rupee closed at 46.62, 9 paise higher compared to its Thursday's close of 46.53/54.

The FII on Thursday were the net buyers in the equity segment with gross buying of Rs 1417.20 crore against gross sell of Rs 1063.40 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 143.90 crore against gross sales of Rs 426.30 crore.

The US markets closed lower on the last trading day of the year despite the news of decline in weekly unemployment numbers. The Asian markets have made a good start and all the major indices are trading in green. The domestic equity markets are going to witness a historic change with one more hour of trading from today. The markets are likely to make a good start of the first trading day of the year supported by the positive sentiment of the Asian markets.JSW Energy is going to be listed on the bourses today.

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

                                                          Nifty Top volumes

• The government is planning to allow power utility NTPC to sell around a tenth of its capacity at market-determined prices.
• Hindalco has given a pot shell fabrication contract for greenfield smelter project at Lapanga to HCC.
• Larsen & Toubro has secured Orders worth Rs 581 crore from Powergen Infrastructure and B W S S B during the third quarter of 2009-10.
• Hero Honda has reported a strong sales growth rate of 74% in its best ever performance with the sale of 375,838 units in December 2009.
• BHEL has entered into talks with global players, including Alstom and Toshiba for manufacturing nuclear reactors to provide end-to-end solutions.