Sensex on Thursday pared early gains and closed almost flat, as worried funds booked profit after the latest food inflation data further fuelled their fears that the RBI may tighten key policy rates on Friday.
Sensex on Wednesday plummeted 491 points, recording its sharpest fall since last August, as foreign funds pressed panic button ahead of the expiry of the January contracts tomorrow amid feeble global cues.
Sensex Friday closed below the psychologically important 17,000-point mark Friday. It ended 198 points lower, giving up gains earned on the back of better than expected results from heavyweight Reliance Industries.
Sensex slipped more than 2 percent lower in early trade on Friday to touch its lowest level in a month, with frontline stocks such as Larsen & Toubro, Reliance Industries and financials leading the decline.
Sensex Wednesday pared early gains to end the day with a moderate loss of over 11 points as profit-booking emerged in index heavy stocks, including Wipro which posted 21 percent rise in third quarter earnings.
A benchmark index of Indian equities gained a meagre 14 points this week from its last weekly close even as broader indices managed to move up significantly and foreign investors bought into a wide range of scrips.