Market May Continue To Remain Under Pressure

Indian equities markets plunged to 8-months lows with the Nifty closing below the 8000mark due to fears of a below-normal monsoon will delay the key economic reforms and further cuts in borrowing costs led to a sharp selloff in the Indian markets. Investors' cautious stance ahead of next week's meeting of the US Federal Reserve also added to downbeat investor sentiment. The BSE Sensex and Nifty end at the lowest closing levels since October 2014. The Sensex closes 1.75%, or 469.52 points, at 26,370.98, while the Nifty ends 1.96%, or 159.10 points, lower at 7,965.35 points. The broader markets, too, caught in bear grip. The BSE Midcap and Smallcap indices were down 1.8% and 1.55%, respectively. The rupee closes weaker against the US dollar at 63.97, compared with its previous close of 63.84, tracking weak equity markets.

U.S. stocks closed higher on Thursday, adding to strong gains made a day earlier, as retail sales provided more evidence of a strengthening economy. But the main indexes finished off their session highs, pulling back after the International Monetary Fund halted negotiations with debt-strapped Greece. The S&P 500 rose 3.66 points, or 0.2%, to finish at 2,108.86, putting the benchmark on pace for a weekly advance of 0.8%. The Dow Jones Industrial Average gained 38.97 points, or 0.2%, to end at 18,039.37, while the Nasdaq Composite tacked on 5.82 points, or 0.1% to 5,082.51.

European stocks pared gains after the IMF halted negotiations due to a lack of progress in reaching a bailout agreement. The Stoxx Europe 600 index ended 0.6% higher at 393, down from its intraday high of 395.55. Greece's ASE Index closed up 8.2%, the most among western-European markets, before the IMF's statement. France’s CAC 40 index picked up 0.7% to 4,971.37, while the U.K.’s FTSE 100 index added 0.2% to 6,846.74. The CAC 40 in Paris soared 1.53% to 5,010.60.

Asian stocks traded mixed on Friday. South Korea’s Kospi index gained 0.15%. New Zealand’s NZX 50 Index slide 0.1%. Australia’s S&P/ASX 200 Index lost 0.2%. Japan’s Topix index traded at flat.