Mumbai: Even though the Sensex logged one of the best single day gain on the last trading day of the week in the 2012, the benchmark Sensex still ended lower by 134 points to close the week at 17,503.24 on constant selling due to setback to the ruling Congress party in the assembly elections, extending losses for the third straight week.
The week was shortened for holiday on March 8 for "Holi".
Slowing Chinese economy, weak rupee and firm crude oil prices also affected the market sentiment. Facing an economic slowdown due to dwindling exports, China, the world's second largest economy, has for the first time in seven years scaled down its GDP growth target to 7.5 percent from 8 percent to focus more on structural problems and unbalanced development.
According to dealers, the election outcome would push the Congress led UPA government to go on the back-foot and may not be able to carry on with reform process due to resistance from opposition parties at the center.
The BSE benchmark Sensex resumed lower at 17,598.42 and hovered in a range of 17,691.96 and 17,008.77 before settling the week at 17,503.24, showing a net loss of 133.75 points or 0.76 percent. It dropped by 786.11 points or 4.30 percent in the last three weeks inspite of hectic short-coverings by operators on the Friday after good response by private-sector debt holders agree to participate the Greek's bond swap offer.
The news paved the way for Greece for the second bailout and for investors to go back for risk appetite like stocks as signs that the country was moving closer to avert a default.