The Indian benchmark equity indices tumbled on Monday led by the profit booking from investors in metal, realty and oil & gas stocks. The BSE Sensex settled below the psychological mark of 17,000 while the S&P CNX Nifty shut shop below the crucial level of 5100. Tracking global cues, markets lingered in a flat territory during most part of the day but weakness in the major European markets raised apprehensions back home and marketmen opted to take some profit off the table. India's largest private sector company, Reliance Industries (RIL) shed over 3% in trade as the bonus shares of the company started trading on the bourses from today. Fall in metal prices on the London Metal Exchange (LME) on Friday triggered heavy sell-off in metal majors like Sterlite Industries, Tata Steel and Hindalco Industries. Finally, the BSE Sensex closed lower by 118.40 points or 0.69% to end at 16,983.14, while the S&P CNX Nifty declined by 42.2 points or 0.83% to settle at 5066.70.

The US markets made a mixed closing on Monday with marginal change, even the comments from Federal Reserve Chairman Ben Bernanke was unable to help the markets gain strength. The Fed chief said unemployment and other problems would hold the economy to 'moderate' improvements and that rates are likely to remain low. Financials, technology and energy stocks finished lower, which were counter balanced by some defensive sectors, like telecom and utility. The Dow Jones industrial average was up by 1.21 points, or less than 0.01%, to 10,390.11. The broader Standard & Poor's 500 index fell by 2.73 points, or 0.25%, to 1,103.25 while the Nasdaq composite index lost 4.74 points, or 0.22%, to 2,189.61.

Crude prices declined on Monday for the fourth consecutive session in a row, to below $74 a barrel, pressured by continued concern for the economy. The market was also cautious ahead of the crude inventory data to be released on Tuesday. Benchmark crude for January delivery fell 2%, or $1.54, to settle at $73.93 on the New York Mercantile Exchange, the lowest level in about two months. In London, Brent crude for January delivery lost $1.09 to settle at $77.53 on the ICE Futures exchange.

The Indian rupee closed weaker on Monday, the strength in dollar against other major currencies overseas was putting the currency under pressure from the very beginning. The local stock markets too turned choppy and raised concerns of fund outflow. Finally the rupees closed at 46.48, 28 paise weaker compared to its Friday's close of 46.20. The local stock markets once again closed lower by about 1% after trading flat for most part of the day.

The FII on Monday were the net buyers in the equity segment with gross buying of Rs 2303.80 crore against gross sell of Rs 1858.90 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 189.60 crore against gross sales of Rs 226.00 crore.

The US markets closed flat despite the Fed chief's statement that the economy was recovering moderately, the financial stocks declined while the defensive sectors once again got a boost. The Asian markets have made a weak start and most of the indices were trading in red. The domestic markets continued to decline in previous trading with most of the high flying sectors of recent rally witnessing profit booking, the global cues are indicating a soft start for the local markets and the commodities stocks are likely to be under pressure.

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

                                                          Nifty Top volumes

• Suzlon Energy's arm REpower Systems AG, Germany has inked a delivery agreement, with enXco, an EDF Energies Nouvelles company. 
• Government has stated that Reliance Communication and its other subsidiaries have under reported revenues during 2006-07 and 2007-08.
• It has been reported that Idea Cellular has terminated its sponsorship deal with IPL team, Mumbai Indians.
• RPower is planning to commission the first phase of its 1,200-MW Rosa Power project in Uttar Pradesh before the end of December 2009.
• Cipla has received a demand notice from a government agency for Rs 20.14 crore for alleged overpricing of a drug and interest costs.