Even as both the bellwether indices, Sensex and Nifty, logged their all-time peaks during the week under review, a last day carnage triggered by a meltdown in global markets washed out the early gains, despite announcement of good earnings by some key corporates.
Concluding day's onslaught was so strong that besides BSE-FMCG, all other sectorial indices finished the week in red led by BSE-Metal and Bankex.
Cement and recently favoured realty counters also bore the brunt of heavy selling.
Cutting the six-week bull run, the Bombay Stock Exchange (BSE) 30-issue Sensex ended the week down by 330.98 points or 2.13 per cent. It crossed the 15,800-mark to touch intra-trade historic peak of 15,868.85 on July 24 and later tumbled to a low of 15,159.68.
Finally, it settled the week at 15,234.57 from last weekend's close of 15,565.55.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) also dropped by 120.85 points or 2.65 per cent to end the week at 4,445.20 from previous weekend's close of 4,566.05. It registered an all-time intra-trade high of 4,647.95.
Further weakness in the US housing and credit market as well as deteriorating conditions for corporate buyouts, on Wall Street, the Dow Jones Industrial Average dipped Thursday by 311.50 points and the Nasdaq Composite Index by 48.83 points.
It concerned Asian bourses, including India, that the weakness in the US might curb worldwide growth and as a result, there was a panic like situation on the last trading day of the week.
Cement counters suffered sharp setback on the last two days on reports that the country's anti-monopoly watchdog MRTPC on Wednesday has issued notices to 14 cement firms for "exorbitant" increase in prices.
The government has also put the process of certification of foreign cement manufacturers on a fast track to facilitate import of the building material in the country to meet the growing demand and tame prices.
Though the market was considered to be in overbought zone, initially, it surged to dizzey heights on encouraging first quarter earnings released by some major companies and good rollover from July series to August series on Thursday.
FMCG-giant, ITC, was the most sought after stocks and closed with sharp gains on expectations of demerger of agri business and also announcement of good quarterly numbers.
Ranbaxy Laboratories also was in keen demand on the last two days of the week on reaching an agreement with GlaxoSmithKline (GSK) to settle their litigation in the US over Valtrex, an anti-viral.
Foreign Institutional Investors (FIIs) remained net buyers to the tune of Rs 2,570.60 crore on first four days of the week. They pumped in nearly USD 6.2 billion since June 29, 2007 and USD about 10.5 billion in the current year so far.
"Last day's fall was more attributed to global cues, we had to correct the way market had strong run up in the last six weeks as the Sensex garnered nearly 1,502 points, but the correction came very fast," a technical analyst said.
Sensex scrips like RIL, ICICI Bank, SBI, HDFC Bank, ACC, Grasim, ACL, Tata Steel, Hindalco, Tata Motors, Reliance Com, Bharti Airtel and HDFC closed with sharp losses.
For the week, global markets exhibited feeble trend. The Dow Jones Industrial Average plunged by 4.23 per cent, the Nasdaq Composite Index by 4.66 per cent, the Hang Seng by 3.10 per cent, the Nikkei by 4.81 per cent, the Strait Times by 4.35 per cent, Kospi by 5.06 per cent and Taiwan Weighted by 4.42 per cent.
Among the sectorial indices, the BSE-Metal index crashed by 709.58 points or 5.81 per cent to end the week at 11,501.52 from last weekend's close of 12,211.10 and the Bankex by 474.57 points or 5.65 per cent to 7,920.19 from 8,394.76.
Contrary to the market sentiment, the BSE-FMCG index shot up by 98.67 points or 5.39 per cent to settle the week at 1,927.86 from 1,829.19 due to surge in ITC, GlaxoSmith, HLL and colgate.
During the week, the trading volume on the BSE and the NSE improved further to Rs 29,617 crore and Rs 68,049 crore compared to last weekend's turnover of Rs 29,460 crore and Rs 59,556 crore respectively.
The broad-based BSE-100 Index slumped by 217.10 points or 2.69 per cent to finish the week at 7,838.92 from 8,056.02.
The BSE-200 Index and the Dollex-200 were quoted sharply lower at 1,855.91 and 763.41 at the weekend from previous weekend's close of 1,908.83 and 788.00 respectively.
The BSE-500 Index dropped by 173.39 points to end the week at 5,942.36 from last weekend's close of 6,115.75 and the Dollex-30 ended down at 3,090.19 from 3,168.68 last weekend.
On the NSE, the S&P CNX Defty dipped by 117.50 points or 2.99 per cent to close the week at 3,805.95 from 3,923.45 last weekend and the S&P CNX Nifty Junior by 312.10 points or 3.45 per cent to conclude the week at 8,722.00 from 9,034.10.