Moreover, weak global cues throughout the week pulled down the Indian bourses sharply lower. Sensex nose-dived even below 14K and Nifty dropped to a level of 4,200, weighed by the weakness in the US market, hitting investor sentiments as the week proceeded. The sentiments were so weak that even a steep slide in crude oil prices, softening of inflation for a third consecutive week and strong industrial production data failed to boost up the market sentiments, marketmen observed.
The BSE Mid-cap index declined 216.58 points, or 3.76 pc, to 5,537.14, while Small-cap index slipped 193.68 points, or 2.80 pc, to 6,711.54 during the week. Reliance Industries (RIL) slumped 7.11 per cent to Rs 1,931.40 in the week, putting strong downward pressure on the index. Bharti Airtel fell 3.15 pc to Rs 778.70. Sterlite Industries plunged 17.13 pc to Rs 487.10, ICICI Bank shed 5 pc to Rs 652.85, Infosys Technologies fell 4 pc to Rs 1,644.10. Foreign brokerage house UBS said a sharp and sudden appreciation of the dollar against the British pound and euro would hit IT firms' revenue in dollar terms by 1-2 per cent.
Meanwhile, inflation based on the wholesale price index was quoted low at 12.10 pc in the week ended August 30, as compared to 12.34 per cent in the previous week. Industrial output rose 7.1 pc in July from 5.4 pc in the previous month, data released by the government showed.