Sensex, Nifty slump nearly 2 per cent on all-round selling

Mumbai: Cutting their six-session gaining string, both Sensex and Nifty ended down by nearly 464 points and 153 points, respectively as the week saw market swaying on a host of negative factors.

In the midst of Supreme Court verdict on coal block allocations, sustained FII selling, weak global cues and even deferment of decision on gas price mainly weighed on market sentiment. Onset of the week saw the bourses strongly rebounding, sidelining global weakness amid buying in bluechip stocks. But, continued FII selling, concerns over global growth after data showing Eurozone's private sector activity slowing down and China showed factory employment slumped to 5-1/2 year low led the benchmark to 2-1/2 month low, eroding investor wealth by Rs 1.6 trillion on Tuesday.

The market witnessed further selling after Supreme Court cancelled the allocation of 214 coal blocks out of 218. Selling pressure also mounted as the government once again deferred decision on hike in gas price and caution ahead of derivative expiry of September series.

The volatile market was finally calmed by credit rating agency Standard & Poor's (S&P) revision in country's outlook to stable from negative on political ability to push growth and reforms. The benchmark S&P BSE Sensex resumed lower and traded in a wide range between 27,256.87 and 26,220.49 before ending the week at 26,626.32, showing loss of 464.10 points or 1.71 per cent.