Benchmark equity indices snapped their three-day winning streak with marginal losses on Thursday as the bulls opted to take some breather after strong run-up. Investors booked profit in software, technology and oil & gas stocks during the session. Except for the opening trades, the main indices failed to witness positive trade during the entire session. Meanwhile, the second half of the day brought some respite for the bulls and the markets recouped most of their losses on the back of sustained buying in realty, consumer durables and metal stocks. At one point of time, it was looking like the indices will break into the green but bears made a comeback in last few minutes of trade and prevented a positive close of the markets. The broader indices outperformed their larger counterparts in trade. Meanwhile, the food price inflation for the week ended February 20 stayed above 17% mark, which has triggered fresh concerns over likely interest rate hike by the Reserve Bank of India (RBI). Food inflation for the week under review stood at 17.87% against 17.58% in the previous week. Banking stocks underwent minor correction with leadership from ICICI Bank. Reliance Industries' (RIL) shares also saw some profit booking after previous sessions big gains. Finally, the BSE Sensex contracted 28.31 points or 0.17% to finish at 16,971.70 while the S&P CNX Nifty shed 7.85 points or 0.15% to end at 5080.25.

US markets closed with moderate gains on Thursday amid mixed economic reports. Major indices managed a positive close expecting a better jobs report from Labor Department's due on Friday. Investors got concerned in early trade with an unexpected drop in pending home sales. The National Association of Realtors said that its index of home sales agreements fell 7.6 percent in January from December. Sales contracts fell to the lowest level since April. But the mood again got boosted by the Labor Department report saying that initial jobless claims dipped last week after two straight weeks of unexpected increases. The Dow Jones Industrial Average gained 47.38 points, or 0.46%, to 10,444.14.The Standard & Poor's 500 index was up by 4.18 points, or 0.37%, to 1,122.97 while the Nasdaq composite index rose 11.63 points, or 0.51%, to 2,292.31.

Crude prices declined on Thursday after surging for last couple of days as the dollar rebounded and National Association of Realtors said that its index of home sales agreements fell in January. The crude futures traded in a tight range ahead of monthly jobs report. Benchmark crude for April closed down 66 cents, or 0.82 percent, at $80.21 a barrel, after trading in a range of $79.70 to $81.09 on the New York Mercantile Exchange. In London, April Brent crude ended down 71 cents, or 0.9 percent, at $78.54 a barrel.

The Indian rupee closed almost flat on Thursday, taking a breather after a slew of gains. The currency started good tracking the gains in other regional currencies against the American Greenback, though the equity markets were trading in somber mood and once the local equity markets turned choppy the rupee too lost its grip on the fear of foreign fund outflow,that has been pouring in for the last couple of days. Finally the rupee closed at 45.81/82, 2 paise lower compared to its Wednesday's close of 45.83/84.

The US markets closed with moderate gains on mixed economic data, investors were taking cautious steps ahead of the monthly jobs report as monthly snapshot of employment is widely considered to be the most important reading on the economy in US. The Asian markets have made a good start after two consecutive days of lull and most of the indices are trading up by about 1-2%.The domestic markets went slightly into consolidation mood with no major triggers in previous session, though the budget impact is still persisting in the markets and the indices are likely to get a good start today. Banks have started raising home and auto loans, so it will be interesting to watch how investors take it into trading.

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

                                                             Nifty Top volumes

• Suzlon Energy has bagged a contract from Gujarat State Petronet Ltd (GSPL) for setting up 52.5 MW wind energy project in Gujarat.
• Jaiprakash Associates has increased its cement target capacity to 35 mt from 22 mt.
• Tata Motors has unveiled the electric variant of Nano, world's cheapest car, at the Geneva Auto Show.
• Tata Steel has increased prices of long steel products by Rs 1,000 a tonne and that of flat steel products by about Rs 2,000 a tonne.
• Bharti Airtel has announced changes in its senior management; Sanjay Kapoor has been elevated as its chief executive officer for India and South Asia.