Domestic equity markets witnessed heavy selling in the last hour of trade on Friday which resulted in the National Stock Exchange's (NSE) 50-share Nifty shutting shop below the psychological mark of 5000. After spending most part of the day in a tight range markets came under pressure in late afternoon trades on concerns over likely monetary tightening measures by the Reserve Bank of India (RBI). Weak Asian markets also weighed on sentiments in trade. Investors opted to take some profit off the table ahead of the holiday season, which starts next week. Sell-off was led by realty, oil & gas and banking sector stocks while selective buying was witnessed in healthcare, consumer durables and auto shares. The largest private sector company of India, Reliance Industries, which carries significant weightage in the main indices, tumbled over two percent in trade. Another index heavyweight, ICICI Bank was also beaten down in the choppy session. The broader indices also remained subdued in trade. Finally, the BSE Sensex plummeted 174.42 points or 1.03% to settle at 16,719.83, while the S&P CNX Nifty plunged 54.05 points or 1.07% to end at 4987.70.

The US markets closed with marginal gains on Friday after sliding for three consecutive days. The trade for the day remained volatile as it was the expiration of December futures and options but the good result from the two technologies major helped the markets pull out of the red. Oracle, which makes software for large businesses came with better results then expected also the Research In Motion increased profits as it added subscribers and record sales of its smartphones. The Dow Jones Industrial Average rose 20.63 points, or 0.2 %, to 10,328.89.The broader S&P 500 index gained 6.39 points, or 0.6%, to 1,102.47, and the technology-heavy Nasdaq composite index closed higher by 31.64 points, or 1.5%, to 2,211.69.

Crude prices ended higher on Friday after a tension brew up in the oil producing region. Iranian troops crossed into Iraq and seized an oil field. Iranian soldiers surrounded a well in the al-Fakkah oil field, only 200 miles southeast of Baghdad. It is one of the country's largest oil fields. Though the Iranian troops are believed to have left the region but it has raised concern. Benchmark crude for February delivery added 34 cents to settle at $74.42 a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery added 38 cents to settle at $73.75 a barrel on the ICE Futures exchange.

The Indian rupee closed stronger on Friday after declining to its one week low in previous trading. The rupee made a flat start due to the strength in dollar overseas and weakness in the regional stock markets. But in the days trade dollar came off its high and the domestic currency got the advantage of it despite a plunge in the local stock markets. Finally the rupees closed at 46.73, 15 paise higher compared to its Thursday's close of 46.88/89.

The FII on Friday were the net buyers in the equity segment with gross buying of Rs 2534.60 crore against gross sell of Rs 2045.50 crore, while in the debt segment they were the net sellers with a gross purchase of Rs 277.60 crore against gross sales of Rs 772.50 crore.

The US markets made a close of modest gains on Friday some good corporate results boosted the morale of the markets but the overall sentiments remained subdued. The Asian markets have made a mixed opening and some of the indices are trading marginally in red.  The domestic markets were under heavy selling pressure during the last hour of previous trading day. All the rate sensitive sectors traded soft on the concern of RBI's possible tightening the monetary policy. The mood is likely to remain some what similar, though the government statement that growth may touch 7.75% in current financial year may help the markets regain some strength, but the start is likely to be cautious followed by a range bound trade.

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

                                                          Nifty Top volumes

• Unitech has been adjudged fastest wealth creator in a study by Motilal Oswal as in five-year stock price recorded a staggering compound growth of 122%
• Suzlon Energy has repaid $780 million worth of acquisition loans through the proceeds of a partial stake sale in Hansen Transmissions International NV.
• DLF is in talks with Singapore-based Ascendas and Capital for merger of its overseas entity, DLF Office Trust, with REIT.
• Tata Steel has launched its safety mascot 'Jeevan' which has been conceptualised based on suggestions from the company's employees.
• RCom has inked an agreement with mobile phone retailer Univercell to market wireless broadband service in Tamil Nadu.