India's stock markets are said to have been affected by the US market sentiments in a short term, as their shares fell almost by 2% on Friday, prolonging their losing streak for four consecutive weeks.

Also, pulled by global equities rout on increasing concerns, the US economy is said to be falling back to recession and that some European lenders are encountered with a ‘short-term funding crunch’.

The main 30-share BSE index closed down 328.12 points at 16,141.67 with 21 of its sectors closing on the down side, as it fell as low as 2.9 % early in the day and BSE Midcap Index dropped by 1.05% while BSE Smallcap Index went down 1.70%.

Out of the sectored indices, BSE Capital Goods Index dropped by 4.17%, as BSE IT Index fell lower by 4.07 % with BSE Bankex falling at 1.86%. Hence, Tata Motors dropped 5.58%, Infosys Technologies 5.48%, L&T 4.98%, BHEL 4.71 as well as Dr. Reddy's Laboratories sprawled out by 3.53%.

However, the top gainers were Jaiprakash Associates, which rose by 3%, DLF 2.85%, Hero Motocorp 2.17%, Hindalco Industries 2% and Reliance Infrastructure gained 1.20%.

Moreover, the atmosphere in the market was not really good on the NSE as there were 2254 losers compared to 996 gainers.