Indian market had a steep fall where almost all sector closed in red. Metals appeared as biggest loser along with Auto, Capital Goods, and IT. The Sensex closed at 19691, down 492 points from its previous close, and Nifty closed at 5904, down 143 points. The CNX Midcap index was down 2.3% and the BSE Smallcap index was down 3%. The market breadth was negative with advances at 126 against declines of 1197 on the NSE. The top Nifty gainers were IDFC, Bank of India, Bank of Baroda and HPCL and prime losers included Hindalco, Tata Motors, Suzlon and Bharti Airtel. The FIIs were net sellers with sales worth Rs 1040.74 Cr (prov. cash market fig)

In the next session, Nifty has a strong support around 5855, while 5970 and 6030 would be a strong resistance. Intraday traders are suggested to play short sell only at gains or if Nifty sustains below 5855 level. Banking stocks may face more selling pressure if Bank Nifty breaks 11000 levels. Oil-Gas and Auto may appear weak while IT and Pharma may stay comparatively stronger.

Investors with a horizon of 6-12 months can consider following scrips for their investment. These companies have potential to give higher returns than index over a long term.

Corporate giant Larsen and Toubro (L&T) has been allotted a hydropower project that was earlier granted to Moserbaer Projects Ltd in Lahaul and Spiti district of Himachal Pradesh.

Reliance Infrastructure allotted 22.6 million equity shares to AAA Project Ventures, a Reliance Anil Dhirubhai Ambani promoter group company, against convertible warrants issued to them, for Rs 2,095 core. A result of this new equity capital infusion, the promoter group's holding has gone up to nearly 48 per cent from nearly 43 per cent.

Nippon Steel Corp, the world's No. 4 steelmaker, and Tata Steel Ltd said on Friday that their $480 million cold-rolled sheet steel joint venture will begin production in India by late 2013. The 600,000-tonnes-a-year plant, which targets India's surging automotive sheet steel market, will be the first production base for a Japanese steel maker in India.

Eicher Motors , the country's third-largest truck and bus maker, plans to start its own branded sales and service outlets in India, the world's fastest growing commercial vehicle market. The Delhi-based company has formed an equal commercial vehicle joint venture with Volvo of Sweden called VE Commercial Vehicle Ltd in 2008.

India's export went up by 36.4% in December 2010, highest in the last 33 months, to USD 22.5 billion due to diversification of the overseas markets such as Latin America and price competitiveness. However, imports contracted by 11.1%, lowest in the last 14 months to USD 25.1 billion, narrowing the trade deficit in December 2010 to USD 2.6 billion.