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The Bombay Stock Exchange's Sensex fell 2.1% for the week, falling for a fifth week in a row. The 30-share index rose 0.3%, or 56.98 points, to end at 18,918.52 on Friday.
The broader Nifty index ending down 2.2% for the week. The 50-share index rose 0.47%, or 26.55 points, to end at 5,719.70 on Friday.
Finance Minister P Chidambaram announced Budget 2013-14, also widely speculated as the last Budget of ruling Congress party ahead of next year general elections. The Budget met the much anticipated fiscal deficit target of 4.8% for fiscal 2013 coupled with hike in surcharge for 'super-rich' for revenue generation.
Investors were, however, disappointed with the Union Budget with Sensex falling over 300 points on the Budget day after the finance ministry questioned the validity of tax residency certificates held by foreign investors who route their money into India through tax-haven such as Mauritius.
“The overall the Budget was well-placed with focus on spending and other cash outflows. However, the major think that caused disappointment was the Mauritius bar that had bigger sentimental impact,” said Jitendra Sriram, director & head of research (India), HSBC Securities.
The government, however, issued clarification on the Mauritius tax treaty that led to recovery in domestic markets this Friday.
Globally, the resurgence of euro-zone crisis with Italian hung parliament during general elections coupled with looming 'fiscal-cliff' deadline in US added to risk-off sentiments.
For the week, the Dow rose 0.6%, the S&P 500 edged up 0.2% and the Nasdaq gained 0.3%.
The pan-European FTSEurofirst fell to a session low to leave it down 0.9% on the day despite a positive start. Italy's main FTSE MIB was leading the slide, down over 2% and 4% lower on the week, as figures showing the unemployment rate at a 21-year high added to concerns about the country's post-election political stalemate.
Domestically, the key sectors such as banks, capital goods, PSU, metals, real-estate fell between 4-8% for the week while consumer durables and healthcare rose nearly 2% for the corresponding period.
The top gainers among the Sensex-30 were IT majors TCS and Infosys up 3% and 2.5% respectively.
Bajaj Auto, Wipro, Jindal Steel and Bharti Airtel up 0.3-1.5% were the only other gainers for the week.
On the other hand, metal names like Hindalco and Tata Steel slipped 6-8%. Index heavyweight, Reliance Industries too lost 6% over the week.
HDFC Bank, Coal India, SBI, Sterlite, Dr Reddy's, ICICI Bank and Cipla lost 3-5.8%.
