The delay in passage of a US bailout package for ailing financial markets and shut down of America's second largest bank caused a global meltdown with Indian bourses crumbling by a huge 940 points, biggest point-wise fall in the last 25-week, in the week under review.
Even as the US administration continued its debate on a $700 billion rescue package for the shattered financial system, the on-going credit crisis claimed yet another victim leading to across the board sell-off in the stock markets.
The US regulators on Thursday seized the 119-year-old Washington Mutual Inc, a leading savings and loan bank in the US, and sold its banking operations to JP Morgan Chase for $1.9 billion.
In the week to September 27, the Bombay Stock Exchange 30-share barometer tumbled by 940.14 points or 6.70 per cent to end the week at 13,102.18 against its last weekend's close.
Similarly, the broader 50-share Nifty of the National Stock Exchange nosedived by 260 points or 6.12 per cent to close the week at 3,985.25 from its last weekend's close.
Analysts said political squabbling blocked the potential deal on a bailout proposal, on which investors globally have pinned their hopes for revival in the markets.
Domestic markets witnessed a relief rally on Wednesday as the bellwether Sensex recovered by about 122 points on some short-covering of positions ahead of the expiry of derivatives series on Thursday.
Investors looked unwilling to carry forward their long positions in the light of lingering worries about an imminent US economic slowdown even as the first-time jobless data in America jumped to its highest in seven years, pointing to a recession.
IT and realty sectors were under tremendous pressure on concerns about the US recession leading to a global slowdown. The equity markets witnessed heavy capital outflows as Foreign Institutional Investors pulled out nearly $2.0 billion in September following the on-going credit crisis.
Ranbaxy Lab registered a large fall of 23.67 per cent on reports that the Canadian drug regulator expressed caution about the company's drug marketing applications after the US drug regulator blocked sale of more than 30 generic medicines.
Heavy-weights such as Wipro, Satyam Computers, DLF, TCS, Infosys Tech, HDFC, Hindalco, SBI, Maruti Suzuki, BHEL, Tata Motors, ICICI Bank and Jaiprakash Associates tumbled by about 9 to 18 per cent.
Except the BSE FMCG index, which closed in the green, all other indices on the BSE and NSE registered losses in a range of 4.0 to 12 per cent.
The broad-based BSE-100 Index tumbled by 451.63 points or 6.20 per cent to end the week at 6,834.14 from 7,285.77.
The BSE-200 Index and the Dollex-200 were also quoted sharply lower at 1,590.58 and 569.61 at the weekend compared to last weekend's close of 1,695.81 and 611.44 respectively.
On the NSE, the S&P CNX Defty slumped by 224.30 points or 7.03 per cent to close the week at 2,965.50 from 3,189.80 last weekend and the CNX Nifty Junior also finished the week sharply lower by 428.85 points or 6.51 per cent to 6,162.70 from 6,591.55.
