Markets end weak amid fresh Fed fears

Indian shares extended losses for the fourth straight day on Friday tracking the weak trend in other Asian markets, which weakened on fears the US Fed might roll back its stimulus sooner than expected after stronger US manufacturing data. Investors also worried about the rupee's recent weakening against the dollar.

The BSE Sensex ended at 20,666, down 0.8 per cent from its previous close. The NSE Nifty also ended the day down 0.8 per cent at 6,140. "Economic data coming in from the US have been good and things are looking better. This could mean that the tapering may start earlier than expected. However, there are conflicting views due to the uncertainty over the debt ceiling issue," said U R Bhat, managing director, Dalton Capital.

Analysts said the withdrawal of the Fed stimulus, known as Quantitative Easing 3 (QE3), could start in December itself if the jobs data showed an improvement as well. Investors were expecting the Fed to start QE3 tapering by March.

Some sections of the market said investors were booking profits after the markets had run up. "Profit-booking was bound to happen especially in the technology, pharmaceutical and public sector bank space as these started moving up on better than expected earnings numbers. While markets are a little concerned about the slide in the rupee, this is just correction mode," said Sonam H Udasi, head of research at IDBI Capital.

The Sensex in the last four sessions has fallen about 2.7 per cent or 573 points. Among the gainers were the beaten-down sectors of realty, capital goods and power.

Foreign institutions were buyers in the net at Rs 412 crore while domestic institutions were net sellers at Rs 915 crore on Friday, according to provisional data.