The local markets remained in a consolidation mood for the third consecutive day on Thursday as investors avoided committing their funds for investment ahead of the industrial output data for the month of January, to be released on Friday. India's industrial sector had recorded a growth rate of 16.8% in the month of December 2009, way above the market expectations of around the 12% level. Looking at the core sector growth in January 2010 of 9.4%, the overall industrial growth is likely to remain buoyant for the month. Though the figure is expected to come in double digit, the number may be lower on monthly basis due to relatively lower base support. The markets made a flat start of the day and spent most part of the session near the neutral line. Some traction was seen in the equities following release of the weekly wholesale price indices data as the food inflation showed marginal dip during the week ended February 27. The food price inflation for the week under review stood at 17.81% against 17.87% in the earlier week. Meanwhile, negative start for the European indices triggered profit booking back home in late-afternoon trades and dragged the main indices into the red. The main indices witnessed late recovery as marketmen did value picking in blue-chip counters during last few minutes of trade. Last hour buying helped the benchmark indices to touch their one and a half month highs though, the broader indices could not avoid negative close for the day. Finally, the BSE Sensex jumped 69.63 points or 0.41% to close at 17,167.96 while the S&P CNX Nifty rose 17.15 points or 0.34% to finish at 5,133.40.

The US markets once again managed a positive close on Thursday, the concern that China may tighten the policy to cool its overheating economy weighed down US stocks. China's inflation rate rose to 2.7 percent in February from 1.5 percent in January. A steep rise in prices could force the country to raise interest rates. But on the domestic front it was the financial sector that led the markets into green. Citigroup Inc. CEO Vikram Pandit said the bank was on a path toward "sustained profitability" as it sells off risky assets. The Dow Jones industrial average was up by 44.51 points, or 0.42%, to 10,611.84. The S&P 500 index advanced 4.63 points, or 0.42%, to 1,150.24 and the Nasdaq composite index closed higher by 9.51 points, or 0.40, to 2,368.46.

Crude prices closed a tad higher on Thursday, initially the prices declined by about 1 percent after a high inflation number in China raised fears that it may tighten monetary policy soon. Dollar too showed no major movement against other currencies and was unable to give any direction to the crude but the prices closed up on better jobless claims data. Benchmark crude for April delivery settled up 2 cents, or 0.02 percent, at $82.11 a barrel after trading in a range of $81.33 to $82.32 on the New York Mercantile Exchange. In London, April Brent crude ended down 20 cents, or 0.25 percent, at $80.28 a barrel.

The Indian rupee reversed almost all of its previous day gains on Thursday as the dollar strengthened against other major currencies. The domestic currency made a weak start tracking the decline in regional markets and when the local equity markets too started trading weak, the currency followed the trend some recovery was seen in noon session but again the choppiness in the stock markets led the decline in the rupee. Finally the rupee closed at 45.61, 23 paise weaker compared to its Wednesday's close of 45.38/39.

The FII on Thursday were the net buyers in the equity segment with gross buying of Rs 2716.70 crore against gross sell of Rs 2298.50 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 505.40 crore against gross sales of Rs 604.10 crore.

The US markets closed with upward bias supported by the financial stocks though the concern of China tightening its monetary policy was looming on the markets. The Asian markets have made a mixed start and some of the indices are down by about half a percent while those who are in green are trading flat. The domestic markets witnessed some late hours rush and managed a close in green otherwise the mood remained cautious and indices seemed consolidating. Today the indices are likely to get flat to positive start and the whole health care segment is likely to be in limelight with the largest overseas deal in healthcare by Fortis.

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

Nifty Top volumes

• RIL has leased a brand new ultra-deepwater drillship to enhance its eastern offshore exploration campaign.
• Bharti Airtel has made its debut into media and entertainment with the launch of 'Airtel Digital Media Business'.
• NTPC has tripled the volume of natural gas it buys from Reliance Industries at the government-approved price of $4.2 per mmBtu.
• TCS and the Government of Maharashtra have formed a joint-venture to launch internet-based, online citizen services in the state.
• The Government has stated that it has no immediate plans to offload stake in public sector undertakings ONGC and Indian Oil Corporation.

The first order, valued at Rs 85.54 crore, is for supply of equipments & materials, in...