Losses in Indian equities were widespread this week, prompted first by profit booking and then in a big way by a debt default fear on the part of Dubai World. Benchmark indices fell sharply in the last two trading days in sync with bourses across the world.
The 30-share sensitive index (Sensex) ended 389.84 points or 2.29 per cent lower at 16,632.01 points at its weekly close Friday, from the previous week's close at 17,021.85 points.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) too moved down 2.19 per cent or 110.7 points from its last weekly close to end at 4,941.75 points.
Broader market indices too reflected the negative sentiments, with the BSE midcap index ending 2.36 per cent down and the BSE smallcap index falling 2.1 per cent.
Markets started the week on a positive note as news of Reliance Industries' planned bid to acquire a controlling stake in bankrupt Dutch petrochemicals firm LyondellBasell Industries found favour among investors.
While the Reliance scrip benefited by closing 3.31 per cent up, the Sensex too moved up 158.33 points or 0.93 per cent to end the day at 17,180.18 points.
The Nifty closed in the green at 5,052.45 points, a gain of 1.01 per cent.
Tuesday, however, was dull with all major global bourses going quiet as profit booking kicked in.
Sensex shut shop at 17,131.08 points, down 0.29 per cent or 49.1 points, while the Nifty ended marginally lower at 5,090.55 points, a loss of 0.25 per cent or 13 points.
Things were no different Wednesday, with both benchmark indices moving in a very narrow range through the day. The Sensex closed at 17,198.95 points, up 67.87 points or 0.4 per cent, while the Nifty shut at 5,108.15 points, up 0.35 per cent from its last close.
The selling surge started on Thursday with the total turnover touching an all-time high of Rs 1.59 lakh crore. The Sensex shed 2.21 per cent and closed at 16,810.57 points, while the Nifty lost 2.08 per cent to end at 5,108.15 points.
Late Thursday in Dubai, state-owned holding company Dubai World, which manages that emirate's portfolio of businesses, said it had asked creditors for an extension of six months on debt repayments. The news sent bourses across the world tumbling.
Indian stock markets joined in Friday with the Sensex nosediving 644.49 points or 3.82 per cent at one point.
It however, made a significant recovery to end with a loss of 1.32 per cent or 222.92 points to shut shop at 16,632.01 points. The Nifty closed at 4,941.75 points, slipping by 63.8 points or 1.27 per cent.
Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $103.6 million.
The largest gainers in Sensex were Ranbaxy Labs (up 3.4 per cent), Bharti Airtel (up 1.1 per cent), Cipla (up 0.8 per cent), Reliance Infra (up 0.7 per cent), and Reliance Capital (up 0.5 per cent).
Among top losers were Ambuja Cements (down 2.8 per cent), Infosys (down 2.7 per cent), Larsen and Toubro (down 2.6 per cent), TCS (down 2.5 per cent), and ITC (down 1.9 per cent).