Equity markets may expect recovery as week progresses

Markets were under pressure last week but made a sharp recovery on Friday

Markets were under pressure last week but made a sharp recovery on Friday and completed a decent rearguard action from the lows made on Thursday. Unfortunately, the US markets which were going great guns on Friday, did a U-turn and after being up 300 points at one stage, closed lower by 150 points. This would have some effect when our markets open on Monday at least for the short term or the open.

BSESENSEX lost 438.95 points or 0.66 per cent to close at 65,721.25 points while NIFTY lost 129.05 points or 0.66 per cent to close at 19,517.00 points. The broader markets saw BSE100, BSE200 and BSE500 lose 0.56 per cent, 0.47 per cent and 0.66 per cent respectively. BSE MIDCAP gained a tad and was up 0.01 per cent while BSE SMALLCAP was clearly the outperformer and gained 1.51 per cent. Markets were up on two of the five trading sessions and lost on three.

The Indian Rupee was under pressure and lost 59 paisa or 0.72 per cent to close at Rs 82.84 to the US Dollar. Dow Jones gained on the first two days of the week and lost on the remaining three consecutively. The fall on Friday was significant as markets which were up about 300 points closed with losses of 150 points. Dow Jones lost 393.67 points or 1.11 per cent to close at 35,065.62 points.