Profit-booking by operators and investors on fears of hike in interest rates by Reserve Bank Of India, coupled with persistent selling by foreign institutional investors pulled down the BSE benchmark Sensex by 466 points during the week.

The key index dropped to lowest level in more than a week as high inflation stoked macroeconomic problems in the world’s second-fastest growing major economy.

Also, caution prevailed as the central bank is seen raising key short-term interest rates at a policy review early next week.

Volatility was high as traders rolled over positions in the futures and options (F&O) segment following expiry of the near-month April 2011 contracts.

Realty, capital goods, banking, oil & gas, metal and power sectors were the major losers of the week.

The 30-share Sensex declined by 466.27 points, or 2.38 per cent to end the week at 19,135.96, its lowest closing level since 19^th April.

The S&P CNX Nifty fell by 135.20 points, or 2.30 per cent to finish at 5,749.50 on the NSE.

Index heavyweight Reliance Industries (RIL) slumped by 5.58 per cent on disappointing Q4 2011 results.

However, India’s largest oil exploration firm by market capitalisation, Oil and Natural Gas Corporation (ONGC), gained 1.55 per cent.

Food inflation inched up marginally to 8.76 per cent for the week ended 16^th April on the back of rising prices of fruits, protein-based items and onions.

India’s second largest private sector bank by net profit HDFC Bank slipped by 4.63 per cent, while the country’s largest lender State Bank of India declined by 1.91 per cent.

IT stocks fell as the three top infotech firms Infosys, TCS and Wipro said that margins will be under pressure due to hike in wage costs.

India’s largest IT exporter by sales TCS shed 2.65 per cent and Wipro slumped 2.80 per cent.

Realty major DLF, which tanked 9.78 per cent, was the top loser from the Sensex pack.

Other losers were Jaiprakash Associates (8.85 pc), L&T (6.22 pc), RCom (6.11 pc), Jindal Steel (5.84 pc), Reliance Infrastructure (5.45 pc), Hero Honda Motors (4.28 pc), Cipla (3.84 pc) and Tata Steel (2.23 pc).

Among the major indices, the BSE-Realty dropped by 8.45 per cent followed by the BSE-Capital Goods which lost 4.45 per cent, the Bankex shed 3.46 per cent, the BSE-Oil & Gas fell by 2.92 per cent, the BSE-Metal shed 2.81 per cent and the BSE-Power lost 2.42 per cent.

Total turnover of BSE and NSE stood at Rs 15,186.37 crore and Rs 63,045.24 crore, respectively, as against the last weekend’s level of Rs 23,630.21 crore and Rs 50,834.00 crore.