Cutting short two weeks of modest gains, both the key indices, Sensex and Nifty, tumbled by over 2 % due to a host of negative factors.
The market resumed on a weak note on investor concerns over slow growth in US jobs and global economic recovery.
Besides, investors have been cautious ahead of the fourth quarter corporate earnings, industrial growth data and the apex bank's annual monetary policy next week.
First and the last days of the week saw a heavy sell-off due to which the BSE 30-share Sensex tanked by 391.51 points, or 2.24 %, to settle at about two-week low of 17094.51.
The NSE wide-based 50-issue Nifty plunged by 115.45 points, or 2.17 %, to 5,207.45.
On the last day of the week, disappointing growth outlook by IT bellwether Infosys for current fiscal and prevailing economic environment pulled the Sensex down. During the week, Infosys plunged by 15.69 %, contributing in the Sensex fall in a major way.
In dollar terms, the Bangalore-based company was unable to meet even the lower end of its revenue guidance of USD 1,806 million-1,810 million for Q4 FY'12, as revenues stood at USD 1,771 million.
Top software exporter TCS and the third largest software exporter Wipro also dropped in line with Infosys by 9.23 points and 4.91 points. The BSE-IT and BSE-Teck were the top losers from the sectoral indices, falling 11.50 % and 9.56 %, respectively. The second day, the market saw a moderate fall on weak global markets and a massive earthquake in Sumatra that triggered tsunami fears in the Asian region, including India.
"A massive earthquake in Indonesia and tsunami warning led to a bout of profit booking from which markets again recovered (from the day's lowest level) in closing moments," said Sharmila Joshi, Head Equity, Fairwealth Securities.
Besides FMCG, which attracted good buying support on reports of good monsoon, auto scrips were also in demand after car sales rose 19.66 % to 2,29,866 units in March 2012, from 1,92,105 units in the same month last year. Two-wheeler sales also increased 8.27 %.
Meanwhile, brokers said drastic downward revision of industrial growth figures for January has disappointed investors.
The Ministry of Statistics and Programme Implementation (MOSPI) yesterday revised the Index of Industrial Production (IIP) for January from 6.8 % to 1.14 % because of wrong calculation of sugar production during the month.
Terming sharp revision in the industrial production data as "totally baffling", finance minister Pranab Mukherjee on Saturday said he has asked the authorities concerned to look into the issue, which mainly affected the market sentiment.
In all, 17 scrips from the Sensex pack ended with losses while other finished with gains. Hindalco dropped by 6.334 %, BHEL dropped by 5.59 %, Jindal Steel by 5.34 %, Tata Steel by 5.25 %, L&T by 4.71 %, ONGC by 4.59 %, Sterlite Ind by 3.70 %, DLF by 3.11 %, Gail India by 2.96 %, ICICI Bank by 2.90 %, Cipla by 2.92 % and Bharti Airtel by 2.28 %.
However, ITC rose by 3.98 %, HUL by 6.14 %, SBI by 2.18 %, Sun Pharma by 3.94 %, Tata Power by 1.98 %, Hero MotoCorp by 2.26 %, and Tata Motors by 3.94 %.
Among the other sectoral indices, BSE-CG plunged by 4.43 %, BSE-Metal by 3.88 %, BSE-Power by 2.85 %, BSE-CD by 2.54 % and BSE-PSU 2.33 % while BSE-FMCG rose by 3.60 %, BSE-HC by 1.89 % and BSE-Auto by 0.91 %.
The total turnover at BSE and NSE was at Rs. 11,729.67 crore and Rs. 53,223.68 respectively.