Sensex plummets 124 pts; first weekly drop in four weeks

Written by fe Bureau | Mumbai | Updated: Aug 1 2010, 05:24am hrs
The BSEs Sensex fell 0.7% on Friday on profit booking by investors amid negative cues from global markets. With the sharp fall, the index registered its first weekly loss in four weeks, shedding 1.45%.

However, the index gained for the second month in a row. In July, the Sensex has risen just 0.95%, severely under-performing most emerging and developed markets.

The indices came under severe selling pressure in the last one hour of trade. The Sensex finally closed 17,868.9, down 123.71 points, or 0.69%, while the broad-based Nifty fell 41.30 points, or 0.76% to 5,367.6.

Disappointing first-quarter earnings posted by some of the heavyweights like ONGC and Hero Honda dampened the sentiment in the Indian market.

The months with result announcements always tend to be volatile. Some of the heavyweights have disappointed. Hence their stocks have corrected, which has taken a toll on the overall market, said Sandip Sabharwal, CEO, Portfolio Management Services, Prabhudas Lilladher.

Sebi data shows FIIs investments in the secondary market have crossed Rs 10,000 crore ($2 billion) in July. Flows into emerging markets have hit a 16-week high; with India equity funds witnessing their eighth-straight week of inflows.