Local equity markets settled in the red on Monday as investors rushed for profit booking towards the end of the session tracking surge in the greenback. The dollar index rose to 77.920-level in trade, a tad lower from it's over three-month high of 78.141. Markets slipped into negative terrain soon after opening on a flat note led by the mixed cues from the Asian markets. Though recovery emerged in late morning trades, the markets lacked steam to hold their neck in the green and after gyrating in a narrow range for some time they again fell into the red. Strength in the dollar dragged metal stocks lower in trade led by Hindalco Industries which shed over 4% in trade. Capital goods, auto and realty counters were the other major culprits for weakness in the markets. On the other hand, consumer durables counter remained on the bulls' radar during the entire session of trade. Another disappointment in the day's trade was lower closing for broader indices after late sell-off. Finally, the 30-share BSE Sensex tumbled 118.63 points or 0.71% to end at 16,601.20, while the 50-share S&P CNX Nifty corrected 35.10 points or 0.70% to close at 4952.60.

The US markets surged on Monday on the back of some deal making and positive momentum of President Obama's health care reform bill in Senate. It was a day of deal making, French drug maker Sanofi-Aventis SA announced its plans to buy U.S. health care products company Chattem Inc. for $1.9 billion, while mining equipment maker Bucyrus International Inc. said it planned to buy Terex Corp.'s mining equipment division for $1.3 billion. Dutch automaker Spyker Cars submitted a new offer to buy Saab from General Motors Co. On the same time aluminum maker Alcoa Inc. announced an $11 billion joint venture in Saudi Arabia. The Dow Jones Industrial Average gained 85.25 points, or 0.83%, to 10,414.14. The Standard & Poor's 500 index added 11.58 points, or 1.05%, to 1,114.05, while the Nasdaq composite index closed higher by 25.97 points, or 1.17%, at 2,237.66.

Crude prices declined on Monday as the dollar rose against other major currencies. There was cautiousness in the market ahead of the OPEC meet in Angola on Tuesday, though the members' countries have hinted that they would leave supply levels where they are. Benchmark crude for February delivery fell 70 cents to settle at $73.72 a barrel on the New York Mercantile Exchange. In London, Brent crude for February delivery fell 76 cents to settle at $72.99 on the ICE Futures exchange.

The Indian rupee closed lower on Monday, the rupee made a soft start tracking the  weak regional market and traded in a thin range as the local stock markets showed a volatile trade and after some initial resistance declined by about 1%. Finally the rupees closed at 46.84/85, 11 paise lower compared to its Friday's close of 46.73. The Foreign fund flows into stocks are a key determinant of the rupee's performance and the for the last couple of days the FII's have been taking out their investment due to ongoing holiday season.

The FII on Monday were the net sellers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2234.80 crore against gross sell of Rs 2318.20 crore, while in the debt segment the gross purchase was of Rs 188.40 crore with gross sales of Rs 294.20 crore.

The US markets closed with gains of about 1% on Monday, it was a day of deal making and analyst upgrades of Alcoa Inc. and Intel Corp. boosted the sentiments of the market. The Asian markets have made a good start and barring the Chinese market all the other major indices are trading up by more than 1%.The domestic markets suffered profit booking in the second half of previous trading and closed lower again, though the global cues are indicating for a positive start for the markets but the trade is likely to remain range bound in view of the holiday season.  

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

                                                          Nifty Top volumes

• Tata Steel is planning to bring carbon dioxide emissions down to 1.8 tonnes by 2012 and to 1.5 tonnes by 2020
• Axis Bank has decided not to charge pre-payment penalties to its home loans even when customers shift a loan to a competing bank.
• Tata Motors is now evaluating development of hybrid city buses that can potentially reduce fuel consumption by up to 25%.
• Ranbaxy Laboratories will launch Olmesartan Medoxomil, an antihypertensive originally discovered by Daiichi Sankyo, in six African countries.
• Dr Reddy's Laboratories is planning to acquire brands in Russia and launch new products in India.

State-owned Bharat Heavy Electricals (BHEL) has won a repeat order worth Rs 640 crore from Adhunik Power and Natural Resources (APNRL) for the main plant package of the second new-rating unit of 270 megawatt (MW) at its upcoming Thermal Powe...

India's largest pharmaceutical company, Ranbaxy Laboratories has said that it will unveil Olmesartan Medoxomil, an antihypertensive originally discovered by Daiichi Sankyo, in six African countries. The company plans to launch the product...