Mumbai: Domestic stock markets continued its ups and downs this week, albeit Sensex closed with a slight gain. However, Nifty remained below last week's closing.

The softening in Wholesale Price Index (WPI) has raised the possibility that the Reserve Bank of India (RBI) may cut key interest rates further, leading to a rebound in the market during the last two sessions of the week.

The 30-share Sensex closed at 40,356.69 in the last session of the week on Friday, up 33.08 points from the previous week's close. However, the 50-share Nifty of the National Stock Exchange (NSE) lost 12.85 points to settle at 11,895.30.

As compared to last week, the Bombay Stock exchange (BSE) mid-cap index closed at 14,772.99, up 41.88 points, while the BSE small-cap index, closed at 13,326.40, down 148.35 points.

In the first session of the week on Monday, the Sensex closed at 40,345.08, a gain of just 21.47 points over the previous session and the Nifty also gained 4.80 points to close at 11,912.95.

Trading in the stock market was closed the next day on Tuesday due to the holiday on the occasion of Gurunanak Jayanti. The trading trend in the domestic stock market remained weak on Wednesday due to poor industrial production data and weak signals from foreign market, due to which the Sensex fell 229.02 points to close at 40,116.06 and the Nifty also slipped 73 points to close at 11,840.45.

However, the market recovered on Thursday and the Sensex gained 170.42 points to end at 40,286.48 and the Nifty gained 30 points to 11,870.45. In the last session of the week on Friday, the upward trend continued and the Sensex closed at 40,356.69, a 70.21 point-gain as compared to last session and the Nifty closed at 11,895.30, advancing 23.20 points.