Helped by the 1.2% gain on Friday, equity markets posted 2.5% gain this week to close at 16863.06. This is the highest monthly gain since March 6.

Markets started the week on a bearish note and on Tuesday fell about 2.7% under the concerns of widening European Debt crisis and possible military actions between North Korea on one side and South Korea and US on the other side. But later in the week, short covering ahead of the expiry of the May contract and strength in the world equity markets led the markets to a considerable upside and gains for three consecutive days. World markets found strength after the Chinese Central Bank, People’s Bank of China (PBOC) said that Europe will remain its main investment market and Beijing would support actions to help Europe resolve its debt crisis.

Next week would be a busy week in terms of data release. On the start of the week, GDP data for Q4, FY 2009-10 will be released. Apart from this, companies in cement and steel sector will release their sales figure. Perhaps a more closely watched event will be progress of South west monsoon which is expected to hit India early next week. Any delay in arrival of monsoon will spark inflationary concerns and might lead to an increase in interest rates which is negative for the markets. Most of the bad news about Eurozone has been factored in the markets and any downside due to any unwanted developments on this front will be limited.

Author name: Praveen Bajaj

Related posts:

  1. Weekly equity update: June 12, 2010
  2. Equity market update: June 25, 2010
  3. Equity market update