In high volatility, the Bombay Stock Exchange benchmark Sensex tumbled by 502 points, or 3 per cent, this week on heavy selling after fears of tightening of monetary policy and regulations for US banks to invest in equities.
Worries of tightening of monetary policy reduced temporarily when the Reserve Bank of India left key interest rates unchanged while raising the cash reserve ratio (CRR) by 75 basis points.
US President Barack Obama planned to curb risk taking by financial institutions, stunned markets by unveiling new rules for US banks that would restrict their size and prohibit them from certain business activities, a broker said.
The BSE benchmark Sensex fell below 16K-mark to 15,982.08 during the week, a level not seen since November 4, 2009. It ended at 16,357.96 as against last weekend's level of 16,859.68, a net loss of 501.72 points or 2.98 pc.
The Sensex dropped by more than 1,196.34 points or 6.82 per cent in the past two weeks.
The NSE 50-share Nifty also dipped by 153.95 points or 3.06 per cent to end the week below 5K-mark at 4,882.05 as against last weekend's level of 5,036.00.
Interest rate related counters from realty and auto were the worst hit by heavy sell-off, while metal stocks too bore the brunt of selling on fall in its prices at London Metal Exchange and reports that China would further cool down its economy with policy actions.