After 2 consecutive weeks of gains, equity markets ended this week slightly below the last week’s level, loosing 0.3% or 52 points on Sensex to close at 17064.95.
First two days of the week saw markets plunging 500 points to a weekly low of 16617 due to concerns of deepening Eurozone crisis. But thereafter, Wednesday onwards, markets started covering up and in three days regained almost all of the lost ground.
Friday’s IIP data which showed a stronger than expected growth of 17.6% also helped the markets along with news that RIL will buy Infotel Broadband Services, which won all India broadband spectrum in an auction that ended on Friday. This led RIL to gain 3% on Friday to close at Rs 1,046.25.
The way in which markets have rebounded from the recent low along with strong production data and comfortable monsoon progress have put markets are on a strong footing. Unless there are fresh jitters from Eurozone and high inflation (scheduled to be released next week) we expect market to carry on with the positive sentiments of last 3 days.