Mumbai: Share prices closed sharply weak on the stock market during the week under review as apprehension of a prolonged war in Iraq, led to heavy offerings by operators and retail investors, which pulled the SENSEX down by a whopping 3.21 per cent to close the week at 3115.44 points.

At the onset, the US-led strike on Iraq, which began last week seemed to be short and swift, but with the chances of the war get longer than expected, investors started offloading their holdings and prices declined sharply.

The US economy, which was in a bad shape, was tended to improve with the sustained rise in the international oil price and it would help the Indian exports especially in the IT segment.

Software stocks took the brunt of heavy offloading from foreign funds as well as speculators in anticipation of a slump in exports on the back of geo-political concerns.

Heavyweights like HLL, RIL, Infosys Tech, SBI, ICICI Bank, HDFC, Dr Reddy's Lab, Satyam Computer, Telco, L&T, Bajaj Auto, Tisco, HCL Techno, Hero Honda, Grasim and Zee Telefilms suffered a sharp setback, mainly contributing to the SENSEX fall.

Pharma sector, well known as defensive one, also reeled under heavy selling pressure on distress selling.

Two-wheeler stocks like, Bajaj Auto, Hero Honda and TVS Motor lost heavily on fears of lower sales.

According to marketmen, operators and retail investors adopted a cautious and stock- specific approach following uncertainty over the early end to the Iraq war.

PTI