Global concerns and few earnings disappointments dragged the key equity indices lower for fifth day in a row on Monday. The markets extended their last week's losses led by subdued Asian markets and sharp cuts on the Wall Street in Friday's session. Software services provider HCL Technologies, which announced its quarterly earnings before the opening bell, also dampened investors' sentiments in trade. The benchmark indices managed to claw back all of their early losses in the latter part of the day to enter the positive terrain prompted by bottom fishing from marketmen in fast moving consumer goods and capital goods stocks. Meanwhile, another earnings disappointment, this time from tractor major Mahindra & Mahindra (M&M), resulted in one more bout of selling towards the end of the session. M&M's net profit after special adjustments has come in at Rs 413.70 crore against the street's expectations of about Rs 509 crore for the third quarter of the current fiscal. Bharti Airtel was the star performer among blue-chip stocks, gaining almost three percent. Stocks from realty, auto and metal space caused most of the damage to the markets. Intraday volatility was at a higher side as futures and options' (F&O) traders switched their positions from the current month series, which will expire on January 28, to next month contracts. Finally, the BSE Sensex contracted 79.22 points or 0.47% to close at 16,780.46 while the S&P CNX Nifty slipped 28.10 points or 0.56% to settle at 5007.90. Indian markets were closed on Tuesday on the occasion of Republic Day.

The US markets closed marginally lower on Tuesday, it was a very choppy session as the indices were still feeling the heat of President Barack Obama's plan to regulate banks. Uneasiness about the plan to limit the size and trading operations of big banks pulled financial stocks and then the entire market lower. Indices made some recovery with the report of Conference Board that its index of consumer confidence rose to 55.9 in January from 53.6 in December. It was the third straight increase and the highest level in more than a year. The Dow Jones Industrial Average lost 2.57 points, or 0.03%, to 10,194.29. The Standard & Poor's 500 index declined by 4.61 points, or 0.42%, to 1,092.17 and the Nasdaq composite index dropped 7.07 points, or 0.32%, to 2,203.73.

Crude prices plunged to below $75 a barrel on Tuesday on the concern of credit clampdown in China and weak US home prices data. China is one of the biggest oil consumers in the world, but a recent crackdown on bank lending has raised fears that China's appetite for oil could falter. On the same time the US home prices slipped in November and came softer than expected, raising concern for the economic recovery. Benchmark crude for February delivery dropped 55 cents to settle at $74.71 on the New York Mercantile Exchange, having traded as low as $73.82, the lowest intraday price since December 22. In London, Brent crude fell 40 cents to settle at $73.29 a barrel.

The Indian rupee closed almost flat on Monday. The domestic currency has been declining for last couple of days as the dollar gained strength against other major currencies. The rupee made a weak start tracking the sluggish sentiments of the local stock markets but started recovering in mid noon as the stock markets too trimmed their losses. The Euro and other high yielding currencies were seen strengthening against dollar after a slew of declines. Finally the rupee closed at 46.13, marginally higher compared to its Friday's close of 46.15.

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 3247.20 crore against gross sell of Rs 5306.70 crore, while in the debt segment the gross purchase was of Rs 834.60 crore with gross sales of Rs 2153.80 crore.

The US markets,after a day of advances once again closed lower, though the rise in consumer confidence has given a support to the markets but still the banking regulation plan of President Obama was looming in the mind of investors. The Asian markets after a huge sell off have made a weak start with China suffering the most. The Indian markets escaped the sell off, what other Asian markets suffered on Tuesday and might trade lower to catch up. Overall the market sentiments are likely to remain cautious on the penultimate day of the F&O series expiry.

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

                                                          Nifty Top volumes

• Idea Cellular is going to launch the 'Idea Application Store' in association with India's leading VAS provider Spice Digital. 
• M&M's net profit after special adjustments has zoomed by 848.85% to Rs 413.70 crore during the October-December 2009 quarter from Rs 43.60 crore in the same period last year.
• HCL Technologies has reported a net profit decline of 35.82% to Rs 255.44 crore for the December 2009 quarter.
• Promoters' holding of the Kumar Mangalam Birla-owned Grasim Industries in the December quarter increased to 25.50%.
• Maruti Suzuki India will invest Rs 1700 crore between now and April 2012 to increase its annual vehicle production by 25%.