Weekly Review: Sensex drops 727pts

Stock markets registered the fourth straight weekly loss as the key indices, Sensex and Nifty, plunged nearly 5% taking cues from the global sell-off triggered by the unfolding US subprime mortgage crisis.

The Sensex crashed 726.73 points (4.89%) to a 10-week low of 14,141.52 when compared with the previous weekend close of 14,868.25. The Sensex has dropped 1,424.03 points (9.15%) in the last four weeks.

The Nifty tumbled 225.30 points (5.20%) to end the week at 4,108.05 from the last weekend close of 4,333.35.

A slew of factors like the unwinding of yen carry trades, hedge fund redemptions, heavy selling by foreign institutional investors (FIIs) and fears of a global credit sqeeze cast a shadow on the local bourses.

FIIs pulled out Rs 7,033 crore, including the provisional numbers for August 17, during the week.