Stocks: The BSE benchmark Sensex snapped its four-week winning streak and dropped by 695 points past week to close below the psychological 17,000 mark on all-round selling pressure following disappointment from key corporate earnings amid a weak trend in the global markets.
Global stocks tumbled after US President Barack Obama on Thursday proposed new restrictions on banks, which would prevent banks or financial institutions (that own banks) from investing in, owning or sponsoring a hedge fund or private equity fund.
Global markets had already recoiled in recent weeks on fears that demand from China would slowdown as Beijing taps the brakes on its roaring growth to stave-off inflation and to keep the economy from overheating.
Also poor show by some of the key corporate houses that announced their Q3 results past week infused selling pressure.
Companies such as Larsen and Toubro posted 50 per cent decline in its net profit at Rs 758 cr for the December quarter. Kingfisher Airlines also registered a net loss of Rs 420 cr.
India's largest engineering firm L&T's shares slumped 10.83 per cent past week as the company cut its revenue growth target to 10 per cent from 15 per cent at the time of announcing Q3 result.
Sensex dropped 694.62 points or 3.96 per cent to finish the week at 16,859.68 from its last week-end's close. It hovered in a range of 17,712.60 and 16,608.09 points during the week.
The NSE 50-share Nifty also fell 216.20 points or 4.12 per cent to 5,036.00 from previous week's level.