Sensex snaps 2-week gains on selling pressure, falls 620 pts

Stocks: The week saw stock markets witnessing immense volatility amidst selling pressure as the S&P BSE benchmark Sensex snapped its last two-week gains, tumbling by 620 pts following hike in the interest rates by Reserve Bank of India (RBI) coupled with further reduction in its monthly bond purchases by US Federal Reserve.
Profit-booking by wary investors due to expiry of futures and options contract on Thursday and fresh capital outflows also affected the market sentiment.
The sentiment further dampened after the rupee slipped past the 63-mark versus dollar.
Almost all sectors witnessed selling pressure, led mainly by interest rates related stocks from Realty, banking and Auto segments. Metal and Power sectors also suffered losses.

Small-cap and Midcap sectors also dropped on profit- booking from retail investors as these indices fell by 2.81 pct and 2.28 per cent, respectively.
The Sensex resumed lower at 20,899.03 and fell further to more than two-month low of 20,343.78 before settling the week at 20,513.85, still showing a loss of 619.71 points or 2.93 per cent. It had gained by 375.07 points or 1.81 per cent in the previous two weeks.
The NSE 50-share Nifty also dropped by 177.25 points or 2.83 per cent to end at 6,089.50. It had also risen by 95.30 points or 1.54 per cent in the previous two weeks.