Mumbai: A dip in the global sentiments led by defaults in Argentina and Portugal weighed heavy on the Indian equities market which lost 2.47 percent in the week ended Aug 1 from its previous weekly close on July 25.
For the week, benchmark indices lost about 2.5 percent and ended at a near two-week low.
"Lower inflation in EU, expectations of earlier-than-expected rise in US interest rates, default by Argentina and some lower-than-expected quarterly results in India soured sentiments," said Dipen Shah, head, private client group research, Kotak Securities.
The losses comes just ahead of the Reserve Bank of India's bi-monthly monetary policy review key index of the Indian equities markets.
The apex bank will take a call on the key lending rate on Aug 5 (Tuesday) in its review meet here.
Anxiety prevailed even as weak global cues like India's stand on new trade regime at the World Trade Organisation (WTO) had a negative impact.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) fell 645.9 points over previous Friday's close and ended trade at 25,480.84 points.
The index ended at 26,126.75 points on July 25.
According to market watchers, in the short-term quarterly results, geo-political factors and the progress of monsoons will be major triggers that the market will follow.
"The general outlook remain solid. The markets had an interim correction due the geo-politicial turmoil led by defaults in Argentina and Portugal. Going forward RBI review and its outcome will be a major move to watch out for," Sanjay Sachdev, chairman, ZyFin Capital, told IANS.
In the week under review, heavy selling was observed by the foreign funds. The foreign institutional investors (FIIs) turned net sellers Friday to the tune of $251.4 million, or Rs.1,537.06 crore.
Domestic mutual funds bought net stocks worth Rs.1,454.10 crore.
Week-wise, The S&P BSE sensitive index had plunged 135.52 points or 0.52 percent Monday (July 28, 2014) as selling pressure in metal, oil and gas, banking and auto sectors dipped the market.
The markets were closed for trade Tuesday on Eid-ul Fitr. On Wednesday, the markets broke a two-day losing streak and registered gains of 96.19 points or 0.37 percent.
However, apprehension over a probable RBI move to raise interest rates led a major fall in interest sensitive stocks. The index fell 192.45 points or 0.74 percent. Friday saw a downfall of 414.13 points, or 1.60 percent.
Among top gainers of the Sensex were Maruti Suzuki, up 2.48 percent at Rs.2,587, Bharti Airtel, up 1.87 percent at Rs.379.55, Hindustan Unilever up 1.22 percent at Rs.693.85, ICICI Bank, up 0.23 percent at Rs.1,476.40 and Hero MotoCorp up 0.11 percent at Rs.2,598.90.
Top losers included Hindalco Inds, 3.71 percent down at Rs.184.50, Gail India, 3.07 percent down at Rs.422.95, Tata Power, 3.06 percent down at Rs.94.95, Cipla, down 3.02 percent Rs.442.50 and NTPC, down 2.93 Rs.140.75.