Fresh foreign capital outflows also affected the market sentiment. FPI and FIIs sold shares net Rs 859.87 crore during the week as per the SEBI’s data including the provisional figure of April 8.
The Sensex resumed higher at 25,333.98 and firmed up to 25,424.15 on Monday ahead of the Reserve Bank of India’s rate cut. However, it dropped to 24,608.51 as key policy rate cut of 0.25 per cent from RBI failed to induce investors before finishing the week at 3-week low at 24,673.84, showing a loss of 595.80 points or 2.36 per cent.
It has dropped by 663.72 or 2.62 per cent in two weeks.
The NSE 50-share Nifty also dropped by 157.85 points or 2.05 per cent to 7,555.20. It has also tumbled by 161.30 points or 2.09 per cent in two weeks.
Meanwhile, private sector manufacturing and services activities surged to a 37-month high in March on new business orders even as job growth remained sluggish, a monthly survey showed.
Foreign investors turned neutral and started selling in small quantities led by muted expectations of fourth quarter results.
Shares of banking, Auto, FMCG, IT, Consumer Durable, Capital Goods, Teck and Realty sectors fell due to heavy selling pressure.