Late sell-off in the local equities resulted in negative closing for the key benchmark indices on Monday. After witnessing lower opening this morning markets managed to recoup all of their early losses as positive news from Dubai boosted market confidence. Dubai government announced that it received $10 billion from fellow UAE member Abu Dhabi to help it repay $4.1 billion Islamic bond. The buoyant mood in the domestic equities continued till late afternoon trades but after that investors resorted to profit booking as the S&P CNX Nifty was finding stiff resistance at 5150-level. The rising inflation also weighed on banking stocks in trade. Fast moving consumer goods, consumer durables and metal stocks were the other major losers. Besides this, telecom stocks also witnessed heavy unwinding of positions from marketmen after remaining in limelight last week. On the other hand, information technology, cement, capital goods and auto stocks were major growth drivers for the markets. Weakness in the broader markets also remained a cause of concern in trade. Finally, the BSE Sensex declined 21.48 points or 0.13% to end at 17,097.55, while the S&P CNX Nifty shed 11.60 points or 0.23% to settle at 5105.70.

The US markets closed modestly higher on Monday on the back of easing global debt concern as Abu Dhabi extended 10 billion as bail out financing to enable Dubai to settle Islamic bond. There were other good news from domestic front; Citigroup Inc. said it would pay back $20 billion in bailout money it received as part of the government's financial rescue program and Exxon Mobil Corp. announced its acquisition of XTO Energy, which sent energy stocks sharply higher. The Dow Jones industrial average was up by 29.55 points, or 0.28%, to 10,501.05, its highest close since October 1, 2008. The broader S&P 500 index added 7.70 points, or 0.70%, to 1,114.11, its highest finish since October 2, 2008 while the Nasdaq composite index gained 21.79 points, or 0.99%, to close at 2,212.10.

The decline in crude prices continued for the ninth consecutive day and during the trade went below $68 per barrel on persistent concerns about high inventories and weak demand. Crude supplies in the US have raised six out of the past 10 weeks as the refiners kept cutting back on production. This is the longest losing streak for US crude futures' since July 2001. Benchmark crude for January delivery fell 36 cents to settle at $69.51 on the New York Mercantile Exchange. In London, Brent crude for January delivery gained a penny to settle at $71.89 on the ICE Futures exchange.

The Indian rupee closed lower on Monday, the rupee was in a somber mood since beginning, tracking the sluggishness in the regional equity markets though they made some recovery with the advances in local stock markets but the India's wholesale prices rose faster-than-expected in November and raised worries of central bank withdrawing some liquidity support in coming weeks. Finally the rupees closed at 46.70/71, 17 paise weaker compared to its Friday's close of 46.53/54.

The US markets closed higher as the debt concerns eased a bit and there were some good news from the domestic front taking the energy and commodities stock higher. The Asian markets have not made a convincing start, though some recovery is seen after initial jitters but still lots of indices are trading marginally in red. The domestic markets declined in the last hours after trading well for most part of the day. The finance minister statement that the fiscal deficit would not exceed the target of 6.8% of the GDP might give some support to the markets but the overall mood of the markets is likely to remain range bound with the rising inflation becoming the matter of concern.

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

                                                          Nifty Top volumes

• Unitech has decided to focus on Mumbai slum rehabilitation projects instead of luxury projects in Delhi or Gurgaon.
• Suzlon Energy is planning to complete $2.8 billion of its refinancing by the end of January 2010.
• It has been reported that Hindalco Industries is raising Rs 45 billion in debt to fund a new alumina refinery.
• DLF is looking to acquire its promoters, KP Singh family, controlled real estate investment trust (REIT) -- DLF Asset (DAL) -- for about Rs 10,000 crore.
• Vodafone Group Plc is planning to sell its 4.39 % indirect holding in Bharti Airtel.