The Sensex lost 1.3 per cent this week and the Nifty lost 1.6 per cent. In fact, the Nifty broke the crucial 8000 level to end the week at 7983 points.
Next week on Monday the markets may open slightly lower given the downside on Friday in key US and European indices on account of worries in Greece.
Through this week the same pattern of Foreign Portfolio Investors selling and domestic institutions buying continued.
Several banking stocks, particularly from the PSU banking space dropped in trade. Stocks like Canara Bank and Oriental Bank hit their 52-week lows.
FMCG stocks like HUL and ITC also fell as monsoon worries continued to plague shares. IT stocks was the place tom hide in the early part of the week, but they gave up gains after reports of investigations by US authorities in case of visas issued to the companies was reported.
For next week there will be a few things to watch out for. On Monday, there would be the WPI inflation number that would come out. If it is way ahead of expectations the markets might continue to fall. On the other hand if there is an improvement expect markets to stage some recovery.
On Wednesday the US Federal Reserve would conclude its 2-day meeting. The tone of the statement from the US Fed will assume great significance. Of course, there may be no interest rate hikes in the June policy, but, if it does come through it could have a cascading impact on the markets.
Greece would continue to weigh on markets in the coming weeks, unless the country receives the bailout funds.
If it continues to linger from one week to another it is certainly not good news for markets around the globe, including India.
Expect a choppy week and unless you have a penchant for risk, it's best to stay away.