Stocks: The BSE benchmark sensex snapped its last three-week gains by slipping sharply by 403 points on fresh all-round selling by operators and investors in view of completion of August contract and global economic worries.
Markets across the globe were gripped under selling pressure on worries about the pace of the economic recovery in the US, the world's biggest economy.
The BSE sensex fell below the 18,000 mark while the S&P CNX Nifty retraced from 31-month high.
Volatility was high during the week as traders rolled positions in the derivatives segment from the August 2010 series to September 2010 series.
Approval of net set of direct tax rules by the Union Cabinet also affected the market sentiment.
As per the new rules, income tax exemption limit rises from 1.6 lakh to 2 lakh, leaving more money in the hands of individuals, and a lower tax rate for companies.
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However, the government proposes to raise the minimum alternate tax (MAT) on book profits to 20 per cent from current 18 per cent.
Inflation in the Food Articles group declined to 10.05 per cent for the week ended 14 August 2010 from 10.35 per cent in the previous week.
The government also announced a bagful of stimulus measures in the latest review of the Foreign Trade Policy to spur exports.
Meanwhile, the Reserve Bank of India (RBI) said inflation has become increasingly generalised, and hence requires appropriate monetary policy actions to anchor inflation expectations.
The BSE Sensex dropped by 403.41 points or 2.19 per cent to end at 17,998.41 from its last weekend's level.
The NSE 50-share also fell by 121.95 points or 2.20 per cent to 5,408.70 from its last weekend's level.
Fears of a slowdown in global growth spooked equity and commodity markets across the globe, including Indian stocks.
High beta infrastructure stocks were hard hit in the week on selling pressure as the market underwent correction.
India's largest dam builder by sales, Jaiprakash Assoc. lost 9.21 per cent to Rs 111.90 and was the top loser from the Sensex pack.
Other losers from Sensex pack were Reliance infra (8.19 per cent), Hindalco Industries (8.09 per cent), DLF (7.54 per cent), Hero Honda Motors (down 6.86 per cent), Sterlite Industries (4.91 per cent) and Reliance Ind (3.89 per cent).
However, India's largest oil exploration firm by sales, Oil & Natural Gas Corporation (ONGC), gained by 4.73 per cent. India's largest cellular services provider by sales, Bharti Airtel, rose by 1.95 per cent.
The turnover at BSE and NSE declined to Rs 26,572.79 crore and Rs 72,500.48 crore, respectively from its last weekend's level of Rs 26,647.46 crore and Rs 75,268.13 crore.