Stock market this week: The Sensex tumbled nearly 4,100 points this week. On the last trading day of the week, Friday, December 13, the Sensex closed at 82,133 and has since closed in the red for five consecutive sessions. So far this month, the index has tumbled nearly 1,800 points, rising in seven sessions and falling in eight sessions.

Indian equity benchmark indices, the BSE Sensex and Nifty 50, sank in trading for another day on Friday. While the BSE Sensex closed 1,176.45 points lower at 78,041.59, the Nifty 50 also closed 364.20 points lower at 23,587.50.

The Nifty50 slipped below its 200-day moving average for the first time in a month. Benchmark indices posted a weekly decline of nearly 5%, with domestically focused smallcaps and midcaps down nearly 3.5%.

Top BSE gainers were Asian Paints, Nestle India, Titan Company and Maruti Suzuki. Top losers were Tech Mahindra, Axis Bank, IndusInd Bank, M&M, TCS and L&T.

Why is the stock market falling?

Market sentiment turned sour after the Federal Reserve forecast a rate cut in the coming year, leading foreign investors to pull back their investments. Foreign investors have sold shares worth Rs 122.31 billion ($1.44 billion) during the week through Thursday, though their positions remained positive in December after two consecutive months of selling. On Thursday, Indian markets fell sharply following global market turmoil over the US Federal Reserve's accommodative stance on interest rates.

What should investors do amid the fall in the stock market

Religare Broking Senior Vice President, Research Ajit Mishra said: "Despite the weakness, oversold conditions and resilience in select sectors present buying opportunities. Traders are advised to align their positions carefully, with an emphasis on prudent stock selection." Markets are under pressure after Fed's dovish remarks.

What do experts say

According to Rupak Dey of LKP Securities, support is at 23,850, while resistance is at 24,200. US markets remained stable on Thursday after the Federal Reserve projected a lower rate cut. Gold prices witnessed a weekly decline after the Federal Reserve's monetary policy accommodation decision on Friday indicated a slower pace of rate cuts, while focus shifted to US personal consumption expenditure data due later. Foreign portfolio investors turned net sellers of Rs 4,224 crore on Thursday. Domestic institutional investors sold shares worth Rs 3943 crore. FIIs' net short position increased from Rs 1.01 lakh crore on Wednesday to Rs 1.25 lakh crore on Thursday.