With worries of a looming rate increase by the central banking institution gaining weight accompanying a surge in inflationary figures during the month of December, the 30-share index BSE Sensex declined 322 points to close the week below the 19K level this Friday as shareowners discarded interest-rate sensitive real estate, banking as well as automobile scrips.

On Friday (Jan 14), the Sensex marked its closure at 18,860.44, a level last witnessed on September 9, 2010.

On the other hand, the broad-based Nifty closed the week after shedding 97.35 points at 5,654.55.

The Sensex hit a high of 19,447.82 during the early part of the session before dropping to hit a low of 18,811.96.

In the last two sessions, the Sensex dipped around 674 points (3.44%).

In the January 10-14 trading week, the Sensex dropped by 831.66 points (4.22%) as against the previous week's closing.

Shareowners were scared by an increase in wholesale inflation to 8.4% in addition to a deceleration in FII inflows and a feeble opening on European stock markets.

Mr. Amar Ambani, head of research, IIFL stated, "Today, the start was subdued but the indices started rising just ahead of inflation numbers and touched day's highs following the release of the inflation data. But a vicious turn of events saw the market again taking a nasty turn down, dragging the two key indices to the day's low. Weaker-than-expected IIP data coupled with the rise in inflation were the main culprits this week. "

"Clearly, the Indian economy is confronting a few headwinds as of now and one needs to be careful in the near term before there is more clarity," Mr. Amar added.