Benchmark equity indices finished the first trading day of the Budget week with marginal gains despite the strong rally in heavyweights in morning trades. The markets started the day with a bang tracking positive global cues. Though the local markets failed to add weight as the day progressed and gyrated in a narrow band during the first half of the day as investors avoided heavy buying ahead of the most important event of the year - Union Budget 2010-11, to be presented on February 26. Weak start in the European benchmark indices after initial gains triggered profit taking in equities back home and pulled the main indices to the day's lows in the latter part of the day. The NSE's Nifty managed to surpass the psychological 4900-level in early trades but could not sustain above that mark for long time. Realty, consumer durables and healthcare stocks were targeted by the sellers in the second half of the day. On the other hand, software, metal and technology stocks benefited from the drop in the dollar. Index heavyweight Reliance Industries (RIL) reversed all its gains in late trades. Small and mid-cap stocks underperformed their large-cap peers during the session. Railway stocks, which were rallying for past couple of days, witnessed heavy profit booking ahead of the Railway Budget on February 24. It's clear from today's market move that the bulls are not looking in a convincing position to steal the show away from the bears at least in the next couple of sessions as the street gets ready for the budget. Finally, the 30-share BSE Sensex rose 45.42 points or 0.28% to close at 16,237.05 while the 50-share S&P CNX Nifty added 11.50 points or 0.24% to finish at 4856.40

The US markets closed modestly lower on Monday after continuously gaining for last four days. The main reason of decline in the markets was the big consumer companies giving a cautious outlook, raising concern for economic growth. Though the financial stocks were among the gainers of the day after a federal judge approved a settlement between the Securities and Exchange Commission and Bank of America Corp. over the acquisition of Merrill Lynch & Co. The Dow Jones Industrial Average lost 18.97 points, or 0.18%, to 10,383.38. The Standard & Poor's 500 index was down by 1.16 points, or 0.10%, to 1,108.01, while the Nasdaq composite index fell 1.84 points, or 0.08%, to 2,242.03.

Crude prices continued their surge for the fifth consecutive day on Monday marked by the expiry of March contract in a volatile trade with late hour short covering. The unresolved labor issues within France's refinery industry were providing strength to the crude prices. Crude for March delivery expired and settled up 35 cents, or 0.44 percent, at $80.16 a barrel on the New York Mercantile Exchange after trading in a range of $79.45 to $80.51. In London, April Brent crude settled up 42 cents, or 0.54 percent, at $78.61 a barrel.

The Indian rupee bounced back on Monday as the dollar weakened after rising for last couple of days. The greenback turned weak on chances of a earlier-than-expected interest rate hike by the Federal Reserve on the same time euro, that had turned somber recovered on speculation of a quick bailout for Greece. The domestic currency made a good start taking cues from the rally in the other Asian markets and traded good till the first part of the day but pared some of its gains in latter part as the local equity markets turned choppy. Finally the rupee closed at 46.22, 8 paise higher compared to its Friday's close of 46.30.

The FII on Monday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2135.80 crore against gross sell of Rs 1842.40 crore, while in the debt segment the gross purchase was of Rs 234.00 crore with gross sales of Rs 218.00 crore.

The US markets closed modestly lower as the corporate earning and outlook turned investor cautious for the economic growth. The Asian markets that have witnessed a rally in previous session are looking in somber mood today with cut of more than a percent appearing on some indices. The domestic markets reversed all its gains in the last hours of previous session and are likely to make a soft opening today under the influence of negative global cues. The trade is likely to remain cautious as the Union Budget day is nearing and the investors will avoid taking long calls.

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

                                                             Nifty Top volumes

• Corus, the European arm of Tata Steel has began decommissioning its Teesside Cast Products (TCP) plant in Redcar.
• Bharti Airtel is looking at medium-term US dollar debt to fund its takeover of the Africa assets of Kuwait's Mobile Telecommunications Co.
• Reliance Industries has raised its offer for bankrupt LyondellBasell Industries AF to about $14.5 billion.
• The Nagpur Municipal Corporation has imposed a penalty of Rs 1.10 crore on ICICI Bank for evading octroi on sale of gold coins worth Rs 10 crore.
• Reliance Capital's board has approved a counter bid for cinema operator Fame India to acquire 21.6 million shares, or 62.08% equity, at 83.4 rupees a share.

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