Mumbai: The concerns over the rising global crude oil prices due to increasing tensions in the Middle East has dropped Sensex and Nifty by about 2.8 per cent during the week. Inflation, on the other hand, remains as a gruesome factor to motivate the market trends.

Global crude oil prices which crossed $100-mark a barrel in New York and disrupted oil supplies negatively impacted the Indian bourses. This was due to growing worries over the unrest in Libya and other countries.

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

Looking at the current unpredictable scenario, operators and retail investors preferred to book profits on last day of derivatives contract on February 24. The Sensex registered its biggest fall of 545.92 points, amounting to three per cent in last 18 months.

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

The Bombay Stock Exchange started the week higher and touched a high of 18,457.9 but fell down to 17,469.97 before concluding the week at 17,700.91 and resulted at 2.8 per cent fall. 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 155.4 points resulting in 2.85 per cent low to settle the week at 5,303.55.

Subdued sentiment in global markets on apprehensions of interest rate hikes across Asia and other regions were also 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. The other 12 sectoral indices finished with sharp rise 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 on February 12 against 11.05 per cent in the previous week. The negative impact on the market attitude, 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.

However, the market recovered modestly on the last day of the week following government's forecast of a strong 9.0 per cent economic growth for the year ending March 2012.

But the Economic Survey showing concern over the higher inflation, hinted at persistent anti-inflationary monetary stance and a gradual exit from the stimulus.

Overall, 28 out of 30 index based counters closed with losses between 0.27 per cent and 9.06 per cent while only RIL and REL Infra registered gains. Jaipra Asso was the top loser with a fall of 9.06 per cent followed by M&M (8.61 pct), L&T (8.45 pct), DLF (8.08 pct), SBI (7.44 pct), HDFC Bank (7.01 pct), REL Com (6.56 pct), BHEL (6.47 pct), Jindal Steel (6.39 pct), Tata Power (6.08 pct), Hindalco (5.81 pct) Tata Motor (4.89 pct), ICICI Bank (4.88 pct), Infosys Tech (4.84 pct), ONGC (4.81 pct), Tata Steel (4.62 pct) and HDFC (3.27 pct).

After striking a long term deal of USD 7.2 billion with UK energy giant BP, RIL was in the limelight. BP Plc will buy 30 per cent stake in 23 oil and gas blocks held in Reliance Ind. The share price closed the week up by nearly one per cent.

Among the Sectoral indices, BSE-CG plunged by 6.15 per cent, BSE-Auto by 5.35 pct, Bankex by 4.73 pct and BSE-Realty by 4.67 pct. Reflecting downslide in the second-line stocks, the BSE-Midcap index slumped by 4.63 per cent and the BSE-Smallcap by 4.18 per cent.

Total turnover during the week at BSE was down at Rs 16,350.25 crore from Rs 17,390.19 crore last week while at NSE it was up at Rs 66,987.68 crore from Rs 63,240.49 crore .