Sensex makes 244 points loss on Fri, but gains 1.5% this week

Indian equity benchmarks closed Friday's session sharply lower on the back of weak global cues. However, it ended the week with 1.5% gain. The 30-share BSE Sensex fell 244.31 points or 1.46%, to close at 16,453.76 and the 50-share NSE Nifty dropped 72.20 points or 1.44%, to end at 4,943.25 today.

The Nifty, Laurence Balanco, Asian technical research of CLSA said, could retest 4,700 in the near-term . "But if you are looking towards the year-end, I expect this base to continue to develop and a break above 5,200 would suggest an upside target of 5,800 before year-end," he added.

It seemed that globally investors are still worried about the implementation of bailout package approved in parliament by Germany yesterday, though after passing the plan, they were breathing a sigh of relief. European markets were down 1.5-2.5%.

Not surprisingly though, said Mark Mobius, executive chairman of Templeton Emerging Markets. "Passing the ruling in German Parliament is only one step. Implementation is the next step and of course that will take time," he believed.

Bill Belchere of Mirae Asset Securities believes that this move will only serve as 'a salve for a short period of time.'

"This bailout will not really resolve the problem of the medium term fiscal path of Europe," he said. He further adds that the next several months are critical to determine if countries go into recession or escape with a soft patch.