The key benchmark indices were flat in early trades amid mixed cues from overseas markets. The Sensex fell 5.4 points to 16,880 and the Nifty was trading at 5,021 levels.

Metal and healthcare stocks trended higher while IT counters declined today. The metal index on the BSE was up 0.5 per cent. The BSE IT index slid 0.5 per cent.

In the Sensex pack, JP Associates was the biggest loser. The stock fell 4.5 per cent. Infosys, Bharti Airtel and HDFC Bank were the other losers in the group.

Sterlite Ind, however, rose 1.4 per cent and Hero Honda was up 1.1 per cent.

In the US markets, a rebound in commodities drew investors back into the stock market and helped push stocks to new highs for 2009.

The Dow Jones industrial average rose 51.01, or 0.5 percent, to 9,829.87, its highest close since Oct. 6, when it finished at 9,956.

The broader Standard & Poor's 500 index gained 7.00, or 0.7 percent, to 1,071.66, while the Nasdaq composite index rose 8.26, or 0.4 percent, to 2,146.30.

Asian markets, however, were trading slightly lower today. South Koreas Kospi fell 0.6 per cent and Hong Kong's Hang Seng was down 100 points.