Mumbai, Feb 20 (IANS) Indian stock markets were caught up in volatile trading this week with a key index see-sawing between red and green terrains but managing to end Friday with meagre gains.

Global cues were depressing too. Bourses across the world traded on an uncertain note after the US Federal Reserve's decision to increase lending rates to banks was sensed as a possible move to initiate tightening of the easy credit policy.

Investors at Indian markets also speculated on the stance the government is going to take on removal of stimulus measures, given the fact that most of the economic recovery was fuelled by government spending and subsidies to various sectors.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) moved up only 39.04 points or 0.24 percent to end Friday at 16,191.63 points, from its previous weekly close at 16,152.59 points.

The broader S&P CNX Nifty of the National Stock Exchange (NSE) too followed a similar trajectory and closed the week at 4,844.9 points, gaining 18.15 points or 0.37 percent.

Broader market indices ended the week in the red with the BSE midcap index closing 1.19 percent down and the BSE smallcap index a similar 1.19 percent lower.

'The current nervousness is due to the budget, with the government mulling on revoking stimulus measures. To an extent this possibility has been factored in,' said Jagannadham Thunuguntla, the equity head for brokerage firm SMC Capitals.

'Though I personally do not expect any blockbuster announcement, any significant policy changes could have a corresponding effect,' he added.

The Sensex hit an intra-week high of 16,452 points and a low of 16,011 while the Nifty hit an intra-week high of 4,922 points and a low of 4,791.

The top gainers during the week included Hindalco (up 8.4 percent), Ranbaxy (up 6.6 percent), HDFC Bank (up 6 percent), Tata Steel (up 5 percent) and HDFC (up 4.1 percent).

Among top losers were Bharti Airtel (down 11.4 percent), Reliance Infra (down 5.7 percent), DLF (down 5.2 percent), Reliance Industries (down 3.1 percent) and Reliance Capital (down 3.1 percent).

Data with markets watchdog Securities and Exchange Board of India (SEBI) showed that foreign funds were net buyers during the week, having bought scrips worth $437.79 million.

'The markets have been in tight range, about 1,000 odd points, for the past 6-8 months. Last year the rally was not entirely driven by fundamentals. So for most parts of 2010 a lot of sideways movement is expected,' Thunuguntla said.