Week Ahead: US Fed Policy, FPI inflows, crude oil prices, global cues among key market triggers this week

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2.09 per cent and 1.99 per cent dragged by broader indices. The move was subdued in the following sessions, tracking mixed cues. Indices rebounded in the final sessions from its intraday lows.

The Nifty 50 held steady at 22,000, supported by Bharti and Bajaj Finance. Also Read: Bears tighten grip on D-Street: Nifty 50, Sensex log worst session in 2 months; small, midcaps' worst in 2 years Small caps and midcaps logged their worst week in 15 months, witnessing a severe decline in the range of 4.7 per cent-5.5 per cent after capital markets regulator Securities and Exchange Board of India (SEBI) raised concerns over stretched valuations. Experts have also flagged concerns over markets being in a bubble zone.

Eventually, both Nifty and Sensex, closed near the week’s low at 22,023.35 and 72,643.40 levels. All the key sectors, barring IT, ended in the red wherein realty, metal and energy were among the top losers. The stress test results of mutual funds indicated a disparity in the durations that funds would take to liquidate their portfolios.

"After touching a new high, the domestic market witnessed a correction due to concerns over the broader market valuation and increase in volatility. The unfavourable risk-reward balance of mid- and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall,'' said Vinod Nair, Head of Research, Geojit Financial Services. ‘’We expect bargain opportunities to persist in mid- and small-cap stocks whose valuations are supported by fundamentals.