Indian equity markets witnessed smart recovery in late hours of trade on the back of revival in the European markets but they could not avoid negative closing for the day. Markets tumbled in opening trades tracking Dubai concerns in the morning. Dubai is looking to reschedule most of its debt. The region had accumulated $80 billion of debt by expanding in banking, real estate and transportation. At one point of time the BSE Sensex was down nearly 645 points in trade indicating a free fall in the benchmark indices but recovery in the European stocks after early sell-off boosted confidence of the local investors and helped the broadly followed index to erase over 400 points loss in trade. Software, capital goods and technology counters were the biggest losers while healthcare counter resisted the bears in the day's session. Finally, the 30-share BSE Sensex shed 222.92 points or 1.32% to end at 16,632.01, while the 50-share S&P CNX Nifty slipped 63.80 points or 1.27% to end at 4941.75.

US markets along with the other global markets witnessed the shock waves on Friday. The US markets escaped the initial jitters due to Thanksgiving holiday; otherwise global markets were under pressure since a day before. Financial crisis in the Middle East that a state owned company was at the risk of default of $60 billion in debt made the investors cautious. The markets came off their lows in the late hours but the investors were still worried that whether the markets will shrug off a financial crisis in the Middle East or seek protection in more conservative investments. The Dow Jones Industrial Average lost 154.48 points, or 1.48%, to 10,309.92. It was the Dow's biggest drop since October 30. The broader Standard & Poor's 500 index fell 19.14 points, or 1.72%, to 1,091.49, and the Nasdaq composite index closed lower by 37.61 points, or 1.73%, to 2,138.44.

Crude prices closed lower on Friday on concern of a possible default at a Dubai state-owned corporation. Dubai said that two of its flagship firms have planned to delay repayment on debt. Also the dollar rose against euro and other major currencies. But as anxiety over Dubai eased, the dollar gave up earlier gains and crude prices gained back some ground. Benchmark crude for January delivery fell $1.91 to settle at $76.05 on the New York Mercantile Exchange. Benchmark crude prices plunged by 7% in early trading, though those declines eased in later hours. In London, Brent crude for January delivery rose 19 cents to settle at $77.18 on the ICE Futures exchange.

The Indian rupee recovered from the low points of the day on Friday, the currency was in the somber mood since starting despite the decline in dollar overseas.The equity markets have plunged on indication of fresh financial trouble from Dubai. But in later hours the equity markets made a smart recovery, the rupee followed the suit and though it closed weaker but was able to pare much of its intraday losses. The rupees closed at 46.65, 21 paise lower compared to its Thursday's close of 46.44/45.

The FII on Friday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 2935.20 crore against gross sell of Rs 2629.10 crore, while in the debt segment the gross purchase was of Rs 979.90 crore with gross sales of Rs 146.00 crore.

The US markets too suffered the Dubai jolt on Friday though indices were able to recover in last hours but they closed lower. The Asian markets have made a good start and barring few all the indices are trading higher considerably. The domestic markets, that have declined more than 3% in the last two consecutive sessions is likely to get a good recovery today with most of the companies stating that they don't have much exposure to Dubai, also the government has assured that there is no need to press the panic button. All eyes will be on GDP data to be released today.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                            Nifty Top volumes

• Unitech management has said that the company has no exposure to business or borrowings to Dubai.
• Suzlon Energy's Germany-based arm RE Power Systems AG has bagged an order from EDF Energies Nouvelles and RES Canada.
• Investors of DLF Towers in Okhla, south Delhi have demanded a refund from the developer, alleging that the project is delayed.
• Tata Steel reports loss in Q2 due to adverse impact from the Teesside plant as well as due to cost of restructuring at Corus.
• Reliance Capital is planning to acquire a majority equity stake in Mumbai-based Quant Capital Group.