MUMBAI: Indian markets ended near crucial support levels Thursday on the settlement day of January F&O series. Inflation and profit booking in European markets kept the bulls under check.

India's food inflation rose 15.57 per cent and the fuel price index climbed 10.87 per cent in the year to January 15. In the prior week, annual food and fuel inflation stood at 15.52 per cent and 11.53 per cent.

National Stock Exchange’s Nifty closed at 5605.75, down 81.65 points or 1.44 per cent. The 50-share index touched a low of 5594.95 and high of 5726.10 in trade so far.

Bombay Stock Exchange’s Sensex ended at 18686.47, down 282.98 points or 1.49 per cent. The 30-share index touched a low of 18656.05 and high of 19086.69 in trade so far.

BSE Midcap Index was down 1.97 per cent and BSE Smallcap Index moved 1.40 per cent lower.

Amongst the sectoral indices, BSE Realty Index was down 3.95 per cent, BSE Healthcare Index moved 2.68 per cent lower and BSE Metal Index declined 2.05 per cent.

DLF (-6.28%), Sterlite Industries (-4.86%), M&M (-4.73%), Reliance Communications (-4.55%), and Ranbaxy Laboratories (-4.34%) were the top Nifty losers.

The arbitration panel, hearing the matter of exercise by Sterlite Industries of its call option to purchase 49 per cent equity in BALCO from the government, has ruled that call-option is in violation of section 111A(2) of Indian Companies Act. Sterlite Industries can face hurdle in their corporate restructuring programme due to the panel order.

Tata Motors (2.49%), Ambuja Cement (1.85%), ACC (1.61%), Sesa Goa (1.56%) and TCS (1.12%) were amongst the top gainers.