Markets dropped to its lowest in over 3 months on weak cues from global markets. However, with a recovery in US and Asian stocks, Indian bourses too surged and ended with over 2% gains.

The Sensex opened this week at 16,495. The index dropped to its lowest since February on Tuesday on sustained selling by foreign funds. Euro zone debt worries weighed on sentiments of global investors. Sensex dropped to below the 16K mark to a low of 15,960.

The RBI eased rules to increase liquidity at banks. Banks can now borrow as much as 0.5% of their deposits from the central bank under the repurchase agreement till 2 July 2010.

The monsoon rains would be hitting the country on time, said the IMD. This news was cheered by investors. China's support for the euro-zone, saw the index surging, followed by Indian markets. Sensex touched a high 16,891 on Friday - up 931 points from this week's low.

Finally the BSE benchmark ended at 16,863 - up 417 points (2.5%) from the previous week's close.

The Nifty meanwhile, dropped below the 4,800 mark and touched a low of 4,786. It recovered to a high of 5,077 and finally ended at 5,067- up 136 points (2.7%) from the previous close.

BSE mid-cap and small-cap indices underperformed. Indices were up 1% this week at 6,755 and 8,494, respectively.

BSE oil & gas index surged 3.4% to 10,014 as the Ambani brothers tried to reconcile their differences once again. The IT and FMCG index was up 3% each at 5,201 and 2,961, respectively.

However, BSE consumer durables index dropped 2% to 4,480.

Reliance Communications soared 10.5% to Rs 147. Jaiprakash Associates jumped 7.7% to Rs 127. Reliance Infrastructure added 6.8% to Rs 1,056.

Sterlite jumped 6% to Rs 682.

Tata Motors, TCS and DLF gained 4-5% each.

ITC advanced 4% to Rs 282. The cigarette major's profit rose 27% to Rs 1028.22 crore in Q4 March 2010 over Q4 March 2009. The company announced the result during market hours on Friday, 21 May 2010.

Tata Steel slipped 2.6%. Tata Sons, the main investment firm of the Tata Group, is likely to inject around Rs 1,350 crore in Tata Steel through a preferential share-cum-warrant issue to part-finance the steel maker's future growth plans.

India's top truck maker by sales Tata Motors jumped 5.31%. The company reported a consolidated net profit of Rs 2571.06 crore for FY10. M&M jumped 1% to Rs 545 as they acquired stake in Reva Electric Car Company.

ACC was the big loser and dropped 3.8% to Rs 827. Bharti Airtel dropped 1.8%, followed by SBI, Maruti Suzuki and Hindalco.