It was a second successive week of losses for the markets with the Sensex ending the week lower by 0.6 per cent, while the Nifty shed 0.7 per cent in trade.
The rupee also weakened substantially during the week, ending at a 2-month low.
This week's loss was largely on the back of selling by foreign institutional investors.
Foreign Portfolio Investors sold stock for two successive days on Thursday and Friday. On Friday, they pressed sales worth Rs 776 crores in the cash segment.
There were worries over the KYC requirement for P Note holders. Registered foreign funds, generally tend to buy on behalf of other foreign investors through the P notes, which can largely be hot money that exits fast.
Another worry for the markets this week, was hawkish comments from US Fed officials. The Minutes of Fed meeting also pointed to a likely hike in interest rates in the US in June. This had a cascading effect on the market this week and the impact may be felt in the coming days.
Quarterly results of public sector banks were a disaster. Syndicate Bank, Punjab National Bank and Oriental Bank of Commerce, following in the footsteps of Bank of Baroda, which reported a poor set of results.
In fact, Punjab National Bank reported the highest losses ever, by a bank in the country. Shares in ITC rallied this week, after the profitability at the company improved. The company also declared a bonus issue.
Going forward much would depend on what happens across the globe. The UK would hold elections on a referendum on whether it should stay in the Eurozone. This could have a sentimental impact on the global markets, particularly Europe. This could also impact the Indian markets.
Most of the results are also out, with another bad quarter for most corporates. Fingers still remain crossed on when the likely recovery in earnings would happen.