Indian equities were caught up in volatile trading this week with a key index going up and down between red and green zones but managing to close Friday's trading session with small gains.

Worldwide signals were discouraging too.

Stock markets throughout the world traded on a doubtful note after the US Federal Reserve's verdict to raise lending rates to banking institutions was felt as a possible move to start tightening of the easy credit plan.

Indian investors also speculated on the stance the administration is going to take on removal of stimulus measures, given the information that the majority of the financial recovery was fuelled by administration expenditure and grants to different segments.

The 30-share index BSE Sensex surged 39.04 points to end the week at 16,191.63 on Friday. In contrast, Nifty ended the week at 4,844.9 points, gaining 18.15 points.

Broader market indices also closed in the red with the BSE midcap index losing 1.19% down and the BSE smallcap index a similar 1.19% lower.

Jagannadham Thunuguntla, the equity head for brokerage firm SMC Capitals, said, "The current nervousness is due to the budget, with the government mulling on revoking stimulus measures. To an extent this possibility has been factored in.'

"Though I personally do not expect any blockbuster announcement, any significant policy changes could have a corresponding effect," he added.

The top gainers during the week comprised Hindalco, Ranbaxy, HDFC Bank, Tata Steel and HDFC.

The major losers included Bharti Airtel, Reliance Infra, DLF, RIL and Reliance Capital.

Data with SEBI indicated that foreign funds remained net buyers during the week, having bought scrips worth $437.79 million. (With Input from Agencies)