Mumbai, May 16 : Domestic equity markets witnessed another week of sharp correction, with benchmark indices declining over 2 per cent each amid rising crude oil prices and ongoing geopolitical tensions in West Asia.

Nifty declined by 2.2 per cent or 532 points during the week to close at 23,643.5 against the previous Friday's closing, while Sensex dropped 2.7 per cent or over 2,000 points to end at 75,238.

Meanwhile, broader markets remained under heavier pressure, with the mid-cap index falling over 2 per cent and the small-cap index losing nearly 4 per cent.

Sectorally, realty stocks were worst performers, with BSE Realty plunging almost 8 per cent.

Meanwhile, IT stocks also remained under pressure, with the BSE IT index falling 5.7 per cent, followed by auto, capital goods and consumer durable shares.

In addition, banking and PSU stocks also witnessed selling pressure, with the BSE Bankex and BSE PSU indices declining 3 per cent each.

However, few defensive sectors outperformed, with BSE Metal gaining 1.5 per cent, while healthcare stocks rose 1.4 per cent.

From the 30-scrip basket, Titan Company was the top loser, falling 7.6 per cent, followed by Reliance Industries, Tech Mahindra and Mahindra & Mahindra.

According to market experts, investor sentiment remained cautious amid the lack of meaningful de-escalation in West Asia tensions and their impact on crude oil prices, inflation and the rupee.

They said elevated crude prices, rising global bond yields and sustained strength in the US dollar continued to pressure emerging markets, leading to intermittent foreign fund outflows and currency weakness.

Analysts further noted that higher wholesale inflation, fuel price pass-through and elevated bond yields have increased concerns over macroeconomic stability and future monetary policy actions.

In addition, global cues also remained negative as tensions in West Asia continued without any breakthrough.

Moreover, concerns over disruptions in the Strait of Hormuz kept Brent crude oil prices elevated in the $105-110 per barrel range.

Despite the correction, domestic institutional investors continued to provide support to the market, aided by strong retail participation.

Additionally, SIP inflows in April stood at Rs 31,115 crore, helping absorb sustained FII selling.

/IANS