Bears tighten grip: Sensex crashes 1,000 pts on mounting inflation worries

FPIs sell shares worth Rs 4,000 crore; US inflation hits new 4-decade high

Indian markets slumped along with global peers on Friday amid nervousness ahead of the release of US inflation data. The Sensex closed at 54,303, down 1,017 points, or 1.84 per cent — the most since May 19, while the Nifty50 index ended the session at 16,202 with a decline of 276 points, or 1.7 per cent. Both the indices dropped over 2.5 per cent during the week, ending their three-week winning streak.

Foreign portfolio investors (FPIs) sold shares worth nearly Rs 4,000 crore on Friday as the rupee hit a fresh low against the US dollar. After pulling out nearly