Indian capital markets which were experiencing turbulences largely due to global economic uncertainties recovered yesterday, as both Sensex and Nifty landing on green.
However the Japans’ Nikkei stock average marked its lowest close since March 15 on Monday, as worries about the U.S. economy offset signs that the Japanese authorities stand ready to quell any further Yen strength. According to Reuters, the index fell as low as 8,619.21, breaking below the intraday low of 8,656.79 set on August 9, but holding above the March 15 closing low of 8,605 hit in the wake of the March 11 earthquake and tsunami.
Reuters also reported that Wall Street ended a fourth straight down week, with losses of more than 1 percent on Friday as most buyers left the market before the weekend.
“Growing fears of another U.S. recession and destabilization in Europe’s financial system weighed on investors’ minds” Reuters noted.Weak sentiments drag market down
Foreign participation accounted 6% of the total market activity. At the end of the day foreign investors were the net buyers with a net foreign inflow of Rs.44.2mn.