Indian markets wrapped the truncated week on a disappointing note with Sensex and Nifty losing 2% each. However, there was stock-specific action throughout the week with few stocks like Tata Coffee and UB group companies doing very well.

Markets have been weak not only in India but globally post the US election results. Concerns on the so-called 'fiscal cliff' in US and on the fiscal situation of even the stronger EU nations like Germany, have kept the sentiment subdued.

In India, the telecom spectrum sale realized a far lesser amount than expected and has raised concerns on the fiscal deficit.

Weak exports data has also impacted the current account. While the inflation rate did come in better than expected at about 7.45%, the RBI Governor has indicated that, it still remains at elevated levels. IIP came in much below estimated levels.

The 30-share index, Sensex plunged 374.31 points, or 2% over previous week to 18,309.37. On the other hand, the broad based NSE Nifty too dropped 112.20 points, or 1.97%, to 5,574.05. Meanwhile, BSE Midcap declined 0.04% however Smallcap gained 0.58%.

Sectoral indices at the BSE ended weak during the week except BSE Consumer durables, which gained 1.49% and Teck up 0.21%. Top losers were Auto (2.97%), Metal (2.71%), Capital goods (2.15%), FMCG (2%), IT (1.51%), Oil & gas (1.46%), Bankex (1.26%), Power (1.16%), PSU (1.07%), Healthcare (0.86%) and Realty (0.85%).

Dipen Shah, head of PCG Research, Kotak Securities said, "With results season is nearing to an end, focus is likely to shift to the winter session of the Parliament. Government seems committed to fiscal reforms and more announcements / action on these will be needed to sustain markets at current levels and help them move higher."

Commenting on technical outlook, Rakesh Goyal, senior vice president, Bonanza Portfolio said,''In the coming week, market is likely to see further selling below 5,550 level. Support may be seen from 5,500-5,445 levels and recovery is likely only above 5,580 levels. Investors’ shall be looking for global cues and other post-reforms actions within the country for further market direction.

Meanwhile Amar Ambani, head of research, IIFL said, ''Data on exports and growth continues to be grim serving as a cruel reminder of challenges ahead. For the near term, stick to a stock centric strategy and stay vigilant.''