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However, market recovered on bargain hunting and comments from Finance Minister P. Chidambaram and Reserve Bank of India Governor D. Subbarao that India doesn't plan to introduce capital controls.
In the week ended Friday, the 30-share S&P BSE Sensex fell 78.74 points or 0.42% to 18,519.44. The 50-unit CNX Nifty fell 36.10 points or 0.66% to 5,471.75.
The S&P BSE Mid-Cap index fell 1.48%, underperforming the Sensex. The S&P BSE Small-Cap index declined 0.42%, matching fall of the Sensex.
On the Monday, markets extended Friday's steep losses as a sharp setback in rupee which hit record low against the dollar and a surge in bond yields spooked investors.
The CNX Nifty settled at over 11-month low. The Sensex lost 290.66 points or 1.56%, off 279.86 points from the day's high and up 168.37 points from the day's low.
On Tuesday, indices dropped for the third day in a row on rising expectations that the US Federal Reserve will soon start withdrawing its monetary stimulus to the US economy. But, the market trimmed losses after an initial sharp slide. The S&P BSE Sensex lost 61.48 points or 0.34%.
On Wednesday, indices erased sharp initial gains and ended sharply lower in choppy trade as the rupee hit record low below 64 against the dollar on rising expectations that the US Federal Reserve will soon start withdrawing its monetary stimulus to the US economy.
Weakness in European stocks also dampened sentiment. The S&P BSE Sensex settled at its lowest level in over 11 months and below the psychological 18,000 mark.
The Sensex lost 340.13 points or 1.86%.
However, on Thursday, indices surged after data showed a pickup in manufacturing activity in euro zone and China. The barometer index, the S&P BSE Sensex, reclaimed the psychological 18,000 level. The Sensex attained its highest closing level in almost a week. The Sensex jumped 407.03 points or 2.27%, up 553.35 points.
On Friday, Comments from Finance Minister P. Chidambaram and Reserve Bank of India Governor D. Subbarao on Thursday, 22 August 2013, in separate news conferences that India doesn't plan to introduce capital controls helped soothe investors' nerves as equities rose for the second day in a row and as the battered rupee also recovered.
The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit one-week high. The Sensex jumped 206.50 points or 1.13%, up close to 305 points.
Sectors & Stocks
Among the sectoral indices, Power, Oil & Gas, PSU, IT and Metal indices closed in the positive territory with gains between 0.2-12 %.
On the other hand, Health Care, Auto, Realty and FMCG indices lost 3% each. Consumer Durables, Capital Goods and Teck too gave off 0.4-2.5%.
The top Sensex gainers for the week were metal names - Tata Steel, Sterlite, Jindal Steel and Hindalco all up in the range of 11-20%.
BHEL, Tata Power, Coal India, HDFC Bank, TCS, GAIL and ONGC up 2-9.5% were the other gainers for the week.
Meanwhile, Bharti Airtel down 8% was the top loser followed by NTPC, Sun Pharma, Cipla, Hero MotoCorp, Tata Motors, ITC, Bajaj Auto, Mahindra & Mahindra, L&T, Dr Reddys, Maruti Suzuki and Wipro down 2-7.5%.
Key events to watch out next week
India will report June quarter GDP on Friday, which will indicate how much the economy has slowed.
Expiry of equity derivative contracts for August on Thursday
Sesa Goa Ltd to replace Sterlite Industries Ltd in India's benchmark index
