The BSE Sensex recording the lowest close in 2013 while Nifty closed below the 6,000 levels. Indices plunged below the important levels with Sensex sliding below 19500 and Nifty crumbling below 5940 levels decisively.
The Sensex slumped 296 points, or 1.5% to 19,485 this week. During the same time, Nifty lost 95 points, or 1.6%, to 5,904. Broader markets underperformed the benchmark index. The BSE Mid-Cap index fell 3% and the BSE Small-Cap index declined nearly 4%.
During mid-week, the major blow to the markets that dampened the sentiments came in after India's gross domestic product (GDP) is estimated to grow an annual 5% in the 2012/13 fiscal year due to weak performance of the manufacturing, agriculture and services sectors. The estimate is the worst of all growth projections issued by the government and the RBI. Last month, the RBI had pared the GDP growth estimate for the fiscal year ending in March to 5.5%, the worst since 2002-03.
"It is disappointing. My own estimate is when the full year data becomes available, it can be revised upward," said C Rangarajan, the chairman of the Prime Minister's Economic Advisory Council. Despite the revision, the economy could still grow at 5.5% or more for the current fiscal year ending March, he said.
In the international market, the Euro zone concerns resurfaced with political headwinds emerging in Spain and after comments by ECB President Mario Draghi ignited renewed economic fears over the Euro zone.
Meanwhile, in the currency segment, the Indian rupee hit a 3-month high at 52.87/$ earlier in the week but retreated to settle at 53.50 during the end of the week.
Back home, on the sectoral front, Consumer Durables, PSU, Metal, Oil & Gas and Power indices lost 4-5%. On the gaining side, IT and TECk sectors surged between 1-2%.
From the Metal space, Sterlite declined by almost 10%. Other Metal shares like Sesa Goa, SAIL, NMDC, JSW Steel, Bhushan Steel and CIL declined between 2-5%.
Oil & Gas shares like BPCL, HPCL, ONGC and IOC declined between 4-5%.
From the IT segment, the winners were TCS, Hexaware and Wipro, all gaining between 1-5%. Software shares gained tracking weakness in the Indian rupee.
Power generation major NTPC slipped 6% after strong investor response to the divestment of Government of India's (GoI) 9.5% stake in the company through the stock exchanges mechanism.
Pharmaceutical major Cipla slumped almost 8% triggered by Managing Director Dr. Y K Hamied announcing his resignation at the time of the announcement of the company's Q3 December 2012.
Meanwhile, FIIs remained net buyers to the tune of huge Rs 16,169 cr during the last 5 trading sessions
Markets will be volatile next week amid various economic data points to be announced. The IIP numbers, Inflation data, import-export numbers for the month along with a host of results will be eyed.