The domestic markets surged on Thursday, snapping the truncated week on a positive note. The benchmark indices made a jubilant start tracking the gains in the regional stock markets. Nifty after recovering its psychological mark of 4800 maintained its momentum throughout the day and both the benchmark indices were able to gain by about 1.5% during the week and the day. The bullishness of the markets was so strong that they defied the negative cues of continuous rise in the food inflation. Food inflation in the country increased to 17.94% for the week ended Jan 30, compared with 17.56% in the previous week. The domestic markets too were taking cues from the moderation in Greece debt worries, ahead of the European leaders meet that could lay out a rescue plan for the country. All the sectoral indices remained on firm footing despite the concern of some government measures in lieu of rising inflation, though the RBI deputy governor played down any central bank action ahead of its April policy review, and the rate sensitive sectors surged afterwards. All the market heavyweights that have suffered in declines of last couple of sessions took active participation in the day's rally. The positive opening of European markets too boosted the sentiments of the markets in the late hours and helped the indices to close near the high point of the day. Finally the BSE Sensex closed higher by 230.42 points or 1.45% to 16,152.59 while the Nifty closed up by 69.65 points or 1.47% to 4826.85.The Indian markets were closed on Friday due to a local festival.

The US markets closed mixed on Friday, on the fresh concerns of China regulating its economy. China on Friday surprisingly increased bank reserve requirements raising worries about the impact of monetary tightening on global growth. A slower-growing Chinese economy would mean weaker demand for industrial goods and that led to decline in the commodity and industrial stocks. The Dow Jones Industrial Average declined by 45.05 points, or 0.44%, to 10,099.14. The Standard & Poor's 500 index lost 2.96 points, or 0.27%, to 1,075.51, while the Nasdaq composite index closed higher by 6.12 points, or 0.28%, to 2,183.53.

Crude prices snapped their four days rally on Friday on the back of government data showing crude and gasoline inventories rose more than forecast and on concern that China's unexpected move raising bank reserve requirements would curb its growth rate, hurting global oil demand. The Benchmark crude for March delivery settled $1.15 lower, or 1.53 percent, at $74.13, after trading in a rannge of $72.66 to $75.35 on the New York Mercantile Exchange. In London, April Brent crude settled down $1.22, or 1.65 percent, at $72.90 a barrel.

The Indian rupee continued its upmove on Thursday tracking the gains in local and regional stock markets. The rupee started strong as most of the Asian currency units were trading higher against the American greenback. Currency traders got a boost from the RBI's decision of easing external commercial borrowing norms. Though the domestic currency pared its most of the gains in last hours as dollar buying started from the oil firms. Finally the rupee closed at 46.49/50, flat with positive bias compared to its Wednesday's close of 46.50/51.

The FII on Thursday were the net sellers in the equity segment with gross buying of Rs 2376.80 crore against gross sell of Rs 2400.40 crore, while in the debt segment they were the net buyers with a gross purchase of Rs 680.40 crore against gross sales of Rs 360.10 crore.

The US markets closed mixed on Friday on the concerns of China regulating its economy that may slow the demand from the fastest growing nation. Most of the Asian markets are not trading today, while some which are trading are marginally in red in the early trade. The domestic markets will have to sail today on the domestic cues lacking any major foreign triggers. The strong IIP numbers may lead to a positive start for the markets on the same time the tightening of interest rates by China may put the markets under worry for similar stand at the domestic front. Scrip specific movements can be seen from Bharti Airtel as  Kuwaiti telecom group 'Zaina' accepted Bharti's proposal to buy its Africa operations, excluding Morocco and Sudan.

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

                                                          Nifty Top volumes

• Unitech plans to repay over Rs 1,000 crore of debt in FY11, the company has already reduced its debt to Rs 6,200 crore.
• DLF has generated revenue collection of over Rs 530 crore in January as it stepped up execution process for the development of properties.
• Hindalco Industries hopes to complete Rs 4,900 crore of debt-raising in the next two weeks to achieve financial closure for Utkal Alumina Refinery.
• Reliance Industries has reported that it had halted exports of refined products to Iran from May 2009.
• Kuwait-based Mobile Telecommunications Company KSC has accepted Bharti's proposal to buy its Africa operations.