Key benchmark indices ended in a flat territory on Thursday in the absence of any major trigger. After starting the day on flat note markets slipped into negative terrain but they managed to recoup all of their early losses in late morning trades on the back of bottom fishing from investors at lower levels. However, the up move remained short lived as rising food price inflation data, which was released today, fuelled apprehensions of likely corrective measures from the RBI in the near term. Markets failed to lure marketmen in the day's trade, top two stock exchanges of India -- NSE and BSE -- remained in news over their decision to extend trading hours from Friday. Following resistance from market participants and brokers, both exchanges postponed extension of trade timings to January 4, 2010. Consumer durables, healthcare and information technology stocks were preferred by investors while realty, oil & gas and capital goods shares remained subdued in the volatile session of trade. Finally, the BSE Sensex slipped 18.52 points or 0.11% to end at 16,894.25, while the S&P CNX Nifty shed 0.30 points or 0.01% to settle at 5041.75.

The US markets declined on Thursday after the government reported an unexpected rise in unemployment claims. The number of new jobless claims rose to 480,000 last week, up 7,000 from the previous week, also a soft profit outlook from economic heavyweight FedEx sank transportation shares. The surge in dollar also impacted the stocks as it climbed to a three-month high against the euro. The Dow Jones Industrial Average declined by 132.86 points, or 1.27%, to 10,308.26. The broader Standard & Poor's 500 index lost 13.10 points, or 1.18%, to 1,096.08, and the Nasdaq composite index closed lower by 26.89 points, or 1.22%, to 2,180.05.

The Crude prices closed almost flat on Thursday as the dollar surged to its highest level against the euro in more than three months. Though there was some good news of increase in factory activity in the US mid-Atlantic region but the increase in jobless claim weighed on the sentiments. Benchmark crude for January delivery dropped a penny to settle at $72.65 a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery fell 92 cents to settle at $73.37 on the ICE Futures exchange.

The Indian rupee closed weaker on Thursday to its one week low. The surge in dollar overseas kept the momentum of the currency down since morning and when the stock markets to faltered, it declined further to its one week low. Finally the rupees closed at 46.88/89, 21 paise weaker compared to its Wednesday's close of 46.67. The US Federal Reserve repeated assurance to keep interest rates at record low that boosted the morale of dollar overseas.

The FII on Thursday were the net sellers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2215.10 crore against gross sell of Rs 2354.40 crore, while in the debt segment the gross purchase was of Rs 892.70 crore with gross sales of Rs 1667.10 crore.

The US markets declined on Thursday on some disappointing economic news and the surge in dollar, it was the biggest loss for the major indices in the week. The Asian markets have made a weak start and most of the indices are trading lower by 1-2% with China suffering the deepest cut. The domestic markets closed flat in previous session after trading choppy for most part of the day, the global cues are indicating a weak start of the markets today.The rate sensitive sectors, like realty and banking are likely to remain in somber mood again on apprehension of RBI's possible action in view of rising inflation.  

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

                                                          Nifty Top volumes

• DLF is planning to list DLF Assets Ltd, an entity promoted by its Chairman K P Singh once market conditions are right.
• A plan for a follow-on public offer in Steel Authority of India will be send to the cabinet in three to four weeks
• ACC has appointed Burjor Dorab Nariman as Company Secretary & Head Compliance of the company.
• GAIL India has sought Rs 330 per thousand cubic meters as marketing margin for selling natural gas.
• HUL will pay a royalty of 1% to its parent company, Unilever, on net sales of specific brands whose trademark is owned it.