In other words, the Sensex and Nifty will need gains of 270.38 points and 80.25 points respectively on Friday to recover all of the weekly losses. The financial markets remained shut on Monday and Thursday.

Analysts say the domestic markets will take cues from global peers and some volatility can be expected in the coming sessions.

"Friday can be a weak volume day with a positive bias as the result season is behind and the government is indicating few measures in next few weeks," AK Prabhakar, head of research at IDBI Capital, told NDTV.

The stock markets suffered sharp losses on Tuesday to break a two-day winning run, with the Sensex ending 623.75 points - or 1.66 per cent - lower at 36,958.16 and the broader Nifty finishing down 183.80 points - or 1.65 per cent - at 10,925.85.

A selloff across financial, auto and IT stocks dragged the indexes lower on that day, making it the worst day of the month.

However, the Reliance Industries stock bucked the trend to log its biggest intraday rise in a more than a decade, after the conglomerate set a target to reach zero net debt within 18 months and vowed to reward shareholders with higher dividends and periodic bonus issues.

On Wednesday, the markets registered a strong rebound tracking global peers, after Washington delayed tariffs on some Chinese imports. The Sensex and Nifty ended 0.96 per cent and 0.95 per cent higher on that day.

The spike in Reliance Industries shares - up 16.17 per cent for the week - has contributed to a 2.89 per cent rise in the NSE Nifty Energy index - which comprises petroleum, gas and power stocks. A higher closing for RIL on Friday will take its winning streak to a fifth day running.

"Market participants would keep a watch on movement of crude oil price and rupee/dollar," said Ajit Mishra, vice president-research, Religare Broking. "Besides, progress on the US-China trade talks would boost investor sentiment."