Weekly review: Markets in free fall, Sensex, Nifty plunge to four-month lows

Domestic and global negative factors weighed heavily on the bourses as both the benchmark indices, S&P BSE Sensex and the CNX Nifty, tanked sharply and ended at four-month lows following across-the-board sell-off, extending their losses for the second straight week.

The 30-share Sensex plunged by about 692 points, while 50-scrip Nifty nosedived 221 points to register their biggest weekly fall in the current calender year.

The Sensex posted its biggest weekly fall in absolute term since second week of December 2011 when it had plunged by 722.11 points, or 4.45 per cent, and the Nifty since third week of November 2011 when it had slumped by 263 points or 5.09 per cent.

Hammering was so strong that 12 out of 13 sectoral indices closed in the red, losing between 13.04 per cent and 1.32 per cent. Realty, PSU, power, metal, capital goods,

refinery, auto and banking segments bore the brunt of investor fury.

Markets closed in negative terrain on all the five trading days of the week.

Trading commenced the week on a bearish note with a sharp downside gap of over 140 points on fears of a fresh eurozone debt crisis after Cyprus said it was planning to tax bank deposits as part of a 10 billion euro (USD 12.9 billion) sovereign bailout deal.

The news from the tiny Mediterranean country, a member of the eurozone, rattled the global markets and its tremors were felt in faraway India too.

On March 16, Cyprus got euro 10 billion package from lenders but planned to impose a one-time levy on money held in the island's bank accounts as part of the sovereign bailout.

Business-friendly Cyprus has treaties on double taxation with many nations, making it attractive for investors.

The sentiment worsen further on the second day, after DMK withdrew support to the Congress-led UPA Government over the issue of alleged human rights violations of Tamils in Sri Lanka. The political development overshadowed the positive atmosphere created by RBI's rate cut on March 19.

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