Sensex sheds nearly 4 percent on weak domestic, global cues

Profit booking in the truncated trading week saw the Indian indices to compare shares have lost nearly 4 percent, amid news the government rather than to growth projections, and concrete solutions to the emerging regional summit to resolve the debt crisis.

Finance Minister Pranab Mukherjee in the middle of the analysis Friday said the economy would grow by only 7.5 percent (plus or minus 0.25 per cent), and warned that the deficit target of 4.6 percent is not reached during the current fiscal year.

30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), shed 3.76 percent or 633.37 points to close the week of 16213.46 points.

50-scrip S & P CNX Nifty too followed suit and the National Stock Exchange dropped 183.45 points, or 3.63 percent, and closed Friday at 4866.7 points.Broader markets also saw profit booking with the BSE 500 index registering a weekly loss of 3.23 percent. BSE midcap index slipped 2.47 per cent, while BSE Smallcap Index fell 2.41 percent, compared to last week.

Minister of Foreign Institutional Investors (FIIS) were net buyers, pumping in $ 233,080,000 available for weeks, according to the Securities and Exchange Board of India (SEB). December has seen more than $ 435 million to buy FIIS.

"Sell-off in equities was mainly due to domestic problems and economic front. DEVELOPMENTS 2G fiasco deepens its policy of selling pressure. Concerned about the health of the country may also have to consider the market," said Sanjeev Zarbade vice president with Kotak Securities.

Throughout the world, all eyes were the summit. Investors became spooked in the absence of any meaningful action, the leaders declared.

EU leaders agreed to move to a more stringent budget rules for the euro area, which is seen very important to ensure a viable future for the single currency zone, but failed to secure changes in all 27 Member States of the EU Treaty.

Among the Asian markets edged lower in the world. Once a week, Japan's Nikkei closed down 1.24 percent at 8,536.46 points, while Hong Kong's Hang Seng closed 2.39 percent lower at 18,586.23 points.

China's Shanghai Composite Index shed 1.92 percent and ended the week 2,315.27 points.

European markets closed mixed note.

UK FTSE 100 fell 0.42 percent down at 5,529.21 points, while the German DAX closed 1.55 percent lower at 5,986.71 points during the week.

The French CAC 40 closed 0.23 per cent to 3,172.35 points.

Wall Street still managed some gains. S & P rose 0.88 percent and ended the week 1,255.19 points, while 1.37 percent and the Dow ended Friday at 12,184.26 points.

Technology-heavy Nasdaq ended 0.76 percent up to 2,646.85 points.

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