After riding high on the back of a month-long rally, the Sensex tumbled 536 points to end the week at 19,727.27. The market sentiment also dampened after US Federal Reserve Bank said on September 20 that there could be a small stimulus reduction at its next meeting in October.
RBI, under its new Governor Raghuram Rajan, last week unexpectedly raised the repo rate to 7.5 percent from 7.25 percent, saying inflation had to be lowered to more tolerable levels. As a result, markets reacted sharply and shares tanked heavily.
Bank stocks fell after global rating agency Moody's cut the senior unsecured debt and local currency deposit rating of State Bank of India, the country's largest lender.
The market mood was choppy with participants churning their portfolios due to expiry of monthly derivative contracts on Thursday, brokers said.
The Sensex resumed lower at 20,060.82 and hovered in a wide range of 20,199.81 and 19,658.64 before finishing at 19,727.27, posting a loss of 536.44 points or 2.65 percent, over the last week's close.
The 30-share BSE barometer gained a healthy 1,744.27 points, or 9.42 percent, in the previous four weeks. The NSE 50-share Nifty also dropped by 178.90 points, or 2.98 percent, to end at 5,833.20. The key index rose 540.35 points, or 9.88 percent, in the last four weeks.


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