The stock markets failed to sustain at higher levels with the benchmark Sensex ending the week below 9,000 despite indications of a strong fiscal and monetary policy stimulus to shore up the economy amid rate cuts by the central banks from major countries.
In the week, the markets remained under constant pressure on fears of deeper impact of the global recession on Indian economy that anticipated earlier.
The Bombay Stock Exchange 30-share barometer ended the week at 8,965.20, registering a fall of 127.52 points or 1.40 per cent from its previous weekend's close.
The Sensex, however, pared losses on Thursday after hitting a low of 8,467.43 following a proposal by the government to boost the economy.
The broader 50-share Nifty of the National Stock Exchange also fell by 40.70 points or 1.48 per cent to close the week at 2,714.40 from its last weekend's close.
Global cues mainly influenced the local markets during the week while analysts said investors awaited a multi-crore stimulus package that the government is expected to unveil on December 6 to boost demand.
The anticipated fiscal measures are likely to cover a reduction in excise duties on commercial vehicles.
After reducing fuel prices on Friday, the government made it clear that it will unveil more measures at the weekend to stimulate growth while the Reserve Bank of India (RBI) will give a signal to banks to slash interest rates.
Commerce and Industry Minister Kamal Nath had said the package would be big enough to revive the industry's confidence.
Analysts said the easing inflationary pressure has also paved the way for any fresh rate cuts.
The European Central Bank and the Bank of England slashed their key interest rates by a record 0.75 per cent to 2.50 per cent and by a full percentage point to 2.00 per cent on Thursday, but failed to have a desired impact on the market sentiment.
Foreign Institutional Investors (FIIs) remained net sellers and pulling out nearly Rs 205 crore in the week.
After scoring impressive gains during the preceding week, IT sector came under a fresh selling onslaught on heightened worries about US economy, which is already into a recession.
As a result, the BSE IT index tumbled by 201.58 points or 7.88 per cent over the week.
Auto stocks were also battered on reporting sharp drop in November sales.
However, Realty stocks bounced on the back of proposed measures for the sector as well as a likely rate cut. The BSE Metal index also gained 256.35 points or 5.85 per cent.
The broad-based BSE-100 Index eased by 34.89 points or 0.76 per cent to end the week at 4,565.56 from its last weekend's close of 4,600.45.
The BSE 200 Index softened to 1,055.85 at the weekend compared to previous weekend while the Dollex-200 was quoted steady at 353.34 from 353.03 at the last weekend.
On the NSE, the S&P CNX Defty declined by 16.10 points or 0.85 per cent to finish the week at 1,889.20 from its previous weekend's close of 1,905.30.
The CNX Nifty Junior, however, shot up by 187.15 points or 4.86 per cent to end the week at 4,036.00 from 3,848.85 last weekend.
