Mumbai, March 21 (IANS): Despite the dovish stand taken by the US Fed on the rate hike possibility, a benchmark index of Indian equities markets lost 242 points or 0.84 percent during the weekly trade ended March 20.

The benchmark 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) fell 242.22 points or 0.84 percent during the weekly trade session ended March 20.

The Sensex ended March 20 trade at 28,261.08 points. For the previous weekly trade ended March 13, the BSE Sensex had closed at 28,503.30 points.

The consolidation in the Indian markets continued since the weekly close of March 13, when the S&P BSE Sensex plunged 945.65 points or 3.21 percent to its worst weekly fall in 2015.

The Indian markets were cautious throughout the week about the outcome of the US Fed's FOMC. The outcome of the meet assumed significance as it provided the trajectory of the US economy, which will also reveal when the rate hike might take place.

With higher interest rates in the US, the foreign portfolio investors (FPIs) are expected to be led away from the emerging markets such as India.

The FOMC took a dovish stand and said that the rate hike might take place in the later part of the year. This gave a major relief to markets such as India where the down side of the meet was being seen as an immediate or a near future rate hike announcement.

However, the US Fed dropped an assurance to be "patient" in raising interest rates and signalled the hike could come by mid to late this year.

"Just because we removed the word patient from our statement doesn't mean we will be impatient," Janet Yellen, US Federal Reserve Board chairman said at a press conference after a globally-awaited meeting of the policy committee on Wednesday.

Despite the dovish stand taken by the FOMC, investor sentiments were subdued as
the Fed characterised the US GDP growth as having "moderated somewhat" and is no longer expanding at a "solid pace". It specifically pointed to weaker export growth.

"The US economy is the largest growth driver in the world and when the US Fed says that the US GDP has moderated somewhat it subdued investor sentiments globally, "Devendra Nevgi, chief executive, ZyFin Advisors, told IANS.

Apart from the anxiety over FOMC outcome, there were also concerns regarding the marginal increase in retail inflation for February which belied expectations of a rate cut next month.

The Reserve Bank of India is scheduled to announce its first bi-monthly policy review for 2015 on April 7.

"Markets ended the week marginally lower despite the US Fed giving out relatively dovish comments on interest rate hikes. The week also saw important bills like the Mineral and Mines Bill getting passed in the parliament," Dipen Shah, head, private client group research, Kotak Securities, told IANS.

"Markets are also awaiting the fourth quarter results, which are expected to be subdued," Shah said.

The markets also keenly followed the passage of several key bills like coal mines (special provisions), mines and minerals (development and regulation) and appropriation bill 2015-16. The anti-black money bill was also tabled in the Lok Sabha.

Parliament has gone into a month long recess and will resume on April 20.

"The markets are awaiting developments on important bills like the land acquisition bill and the post session reforms," Shah added.

According to Nevgi, the markets will keenly watch the ground level implementation of the various bills that were passed.

The markets were extremely volatile throughout the week. The BSE Sensex ended Monday's trade down 65.59 points or 0.23 percent at 28,437.71 points. On Tuesday it closed the day's trade at 28,736.38 points -- up 298.67 points or 1.05 percent.

Then again on Wednesday it closed at 28,622.12 points, down 114.26 points or 0.40 percent. On March 19, Thursday the market shed 152.45 points or 0.53 percent and closed at 28,469.67 points. On Friday it closed at 28,261.08 points, down 208.59 points or 0.73 percent.

The major Sensex gainers on Friday were Wipro, up 2.92 percent at Rs.651.85; Infosys , up 1.30 percent at Rs.2,258.95; Coal India, up 0.75 percent at Rs.368.10; Tata Consultancy Services (TCS), up 0.59 percent at Rs.2,609.65 and HDFC Bank, up 0.34 percent at Rs.1,055.20.

The losers were NTPC, down 6.25 percent at Rs.145.50; BHEL, down 3.68 percent at Rs.245.75; ICICI Bank, down 3.36 percent at Rs.319.10; Gail, down 3.31 percent at Rs.377.15; and Mahindra and Mahindra (M&M), down 2.70 percent at Rs.1,173.