Weekly review: Sensex,Nifty down 2.8%

India import over 70 per cent of its oil requirements and that will have a cascading effect on the economy when the country is already battling high inflation.

Looking at the current unpredictable scenario,wary operators as well as retail investors preferred to book profits on last day of derivatives contract on February 24 when the Sensex registered its biggest fall of 545.92 points,in absolute term,or 3.00 per cent in last 18 months.

They also preferred to play safe ahead of the Union Budget to be announced on February 28,which might give direction to the market either side.

The Bombay Stock Exchange 30-share barometer started the week higher and touched a high of 18,457.90 but turned weak to a low of 17,469.97 before concluding the week at 17,700.91,a fall of 510.61 points or 2.80 per cent. It had gained by 482.91 points or 2.72 per cent in the preceding week.

Similarly,the NSE 50-issue Nifty also dropped by 155.40 points or 2.85 per cent to settle the week at 5,303.55.

Subdued sentiment in global markets on apprehensions of interest rate hikes across Asia and other regions,which could stall economic growth,as well as increased selling by foreign funds too weighed on the Indian markets. Foreign Institutional Investors (FIIs) pulled out about a total Rs 2,770 crore in the last week.

The market mood was so weak that only BSE-Oil&Gas index closed in positive terrain due to rise in the top heavyweight RIL,while other 12 sectoral indices finished with sharp to moderate losses between 6.15 per cent and 0.29 per cent.

Capital goods,auto,banking and realty stocks were the pacesetters in decline. Second-line stocks too suffered a sharp setback on selling by cautious retail investors.

Rise in food inflation to 11.49 per cent for the week ended February 12 against 11.05 per cent in the previous week too impacted negatively on the market attitude,expecting further rise in the key interest rates which might affect the bottomline of the companies.

IIFL (India Private Clients) Head of Research Amar Ambani said that the F&O enquiry on February 24,rising current account deficit,the weekend break before the Union Budget and simmering political tensions in the Middle-East and North Africa forced market participants to wait for a clear trend before taking a call on the near-term direction on the market.