For the first time in two years, the benchmark Sensex closed below the psychologically 10,000 level as funds continued their selling spree amid strong signs of recession in the US - the world's biggest economy - becoming a reality.
The 30-share barometer on the Bombay Stock Exchange fell to end the week at 9,975.35, the lowest level since June 20, 2006 when the key index had closed at 9,822.52. The index also fell to an intra-day low of 9,911.32 during the week compared to 9,875.35 on July 24, 2006.
The Sensex ended the week at 9,975.35, against the last weekend's level of 10,527.85, showing a sharp loss of 552.50 points, or 5.25 per cent.
The 50-share Nifty of the National Stock Exchange also dropped 205.60 points, or 6.27 per cent, to close at 3,074.35, against the last weekend's level of 3,279.95.
Marketmen said signs of uncertainty on the domestic political front, coupled with fears of global recession becoming a reality, took a severe toll on the bourses. Foreign institutional investors continued their selling spree in view of the dim picture in the global financial markets.
Brokers said less-than-expected corporate earnings also contributed to the fall in Sensex. They said efforts by the government and the Reserve Bank to ease money supply in the system had no major impact on investor sentiment.
Meanwhile, the government has reportedly sought data from the Reserve Bank to consider a proposal to enhance the investment limit for bank exposure to equity markets.
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Metal major Hindalco topped the list of losers with a fall of 20.40 per cent followed by Tata Motors, which dropped by 16.49 per cent.
Among other prominent losers ONGC fell 15.28 per cent, Reliance Industries 14.52 per cent, Tata Steel 13.67 per cent, TCS 13.16 per cent, Grasim 12.42 per cent, Ranbaxy Lab by 12.38 pe cent, Jaiprakesh Associates 12.34 per cent, BHEL 11.22 per cent and ACC 9.69 per cent and NTPC dropped 9.54 per cent.
However, Hindustan Unilever firmed up 8.56 per cent followed by Satyam Computer 6.44 per cent, SBI 4.57 per cent, DLF 3.43 per cent and HDFC 3.34 per cent.
The broad-based BSE-100 Index fell another 233.13 points, or 4.31 per cent, to 5,180.84, from last weekend's close of 5,413.97.
The BSE-200 Index and the Dollex-200 were also quoted lower at 1,201.95 and 409.43 at the weekend compared with 1,253.50 and 430.61, respectively.
The BSE-Bankex dropped sharply by 227.19, or 4.27 per cent to 5,546.69, the BSE-PSU fell 300.51, or 5.43 per cent to 5,235.48, the BSE-Midcap moved down 131.16 points or 3.57 per cent to 3,544.84 and the BSE small-cap 187.59 points, or 4.31 per cent to 4,167.86.
On the NSE, the S&P CNX Defty dipped 165.35 points, or 7.05 per cent, to close the week at 2,178.45 from the last weekend's level of 2,343.80 and the CNX Nifty Junior also ended the week lower by 44.95 points, or 0.95 per cent, to 4,670.45 from 4,715.40.