Benchmark equity indices extended their gains for the third day in a row to end in the positive terrain on Thursday. After spending most part of the day in a flat territory, markets picked up pace in late trades which helped the National Stock Exchange's (NSE) Nifty to touch its fresh high for 2009. Auto, metal and consumer durable stocks led the rally. Global cues also remained supportive during the entire session. After Wednesday's solid gains, investors were looking to take some profit off the table at higher levels in the morning session ahead of the extended weekend and the futures & options (F&O) expiry for the current month series in the next week, but easing food inflation and strong growth in core infrastructure industries of 5.3% in the month of November fuelled market sentiments in the latter part of the trade. Tata Motors, Hindalco Industries and Reliance Infra were the star performers of the day. Volatility was at a higher side during the entire session as F&O traders rolled over their positions to next month contracts. Finally, the BSE Sensex soared 129.50 points or 0.75% to close at 17,360.61, while the S&P CNX Nifty gained 33.80 points or 0.66% to end at 5178.40.Indian markets were closed on Monday on account of Moharum.

The US markets closed higher on Monday, taking the major indices to fresh highs as the optimism about the economic recovery lifted shares of technology, energy and industrial companies. Figures from MasterCard Advisors' SpendingPulse, which track all forms of payment, show retail sales rose 3.6% from November 1 through December 24, after dropping during that time last year. The Dow Jones industrial average added 26.98 points, or 0.26%, to 10,547.08, its highest close since Oct. 1, 2008. The Standard & Poor's 500 index was marginally up by 1.30 points, or 0.12%, to 1,127.78, and the Nasdaq composite index advanced by 5.39 points, or 0.24%, to 2,291.08.

Crude prices rose on Monday  and went past $79 a barrel for the first time in last four weeks on cold weather that sent heating oil futures higher and on momentum from continued optimism about economic recovery. Dispute between Russia and Ukraine over transit fees for crude oil going to Europe also were also seen supporting the crude price. Benchmark crude for February delivery added 72 cents to settle at $78.77 a barrel in light, holiday trading on the New York Mercantile Exchange. In London, Brent crude for February delivery rose $1.01 to settle at $77.32 a barrel on the ICE Futures exchange.

The Indian rupee closed with good gains on Thursday, the rupee was in the jubilant mood since beginning as the dollar declined overseas against other major currencies, though the initial choppiness made the momentum volatile for the rupee some month-end dollar demand from refiners and importers too weigh on the rupee but finally the rupee closed at 46.66/67, 21 paise compared to its Wednesday's close of 46.87. All other Asian units were also stronger compared to the dollar.

The FII on Thursday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2467.50 crore against gross sell of Rs 1114.00 crore, while in the debt segment the gross purchase was of Rs 831.10 crore with gross sales of Rs 508.50 crore.

The US markets closed modestly higher on Monday as the data showed rise in retail sales while the weakness in dollar led to the rise in commodities and energy stocks. The Asian markets after a more than one percent rally in previous trading were trading mixed. The Indian markets which closed with a rally on Thursday missed the Asian market rally yesterday and might pick up today. Though, in a holiday shortened week and F&O expiry due, the trade may turn volatile. The Rise in export duty in iron ores will have some impact on today's trade for companies exporting iron lumps.

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

                                                          Nifty Top volumes

• The British government has asked Tata Corus management to look at the possibility of reversing its decision to partially close a plant in Teesside region.
• Tata Motors has decided to settle Singur compensation issue with the vendors and will compensate 75-80% of vendors' Singur loss.
• IDEA Cellular is now the country's third largest GSM operator with 15.24% market share and 55.90 million GSM subscribers.
• ICICI Bank has concluded the sale of its network of electronic point of sales (PoS) terminals that accept credit and debit card payments to FDC.
• Bharti Airtel has launched its wholesale data services for the Middle East.