Markets halt 2-week gains on global growth scare

Stocks: Benchmark indices BSE Sensex and NSE Nifty snapped their last 2-week winning run due to profit-booking from operators in view of heavy foreign capital outflows despite short-covering from operators at the fag-end of the week following expiry of September contracts.
The Sensex resumed lower at 26,107.98 and hovered in a range of 26,339.10 and 25,386.48 before ending the week at 25,863.50, a loss of 355.41 points, or 1.36 per cent.
The Sensex had gained by 1,017.01 points, or 4.04 per cent, in the previous two weeks.
The 50-share Nifty also dropped 113.40 points, or 1.42 per cent, to close at 7,868.50. It had gained 326.85 points, or 4.27 per cent, in the previous two weeks.

The Sensex plunged 541 points on Tuesday due to heavy selling pressure following a sharp fall in European markets.
European stocks tumbled as US index futures took a sharp knock after the scandal surrounding emission standards involving German car major Volkswagen deepened.

Traders said sentiment was also under pressure after the Asian Development Bank said weaker growth in China this year is expected to cause a slowdown in the rest of Asia.
Stocks in the metal space suffered the most after the entire base metal pack retreated at the London Metal Exchange (LME) on mounting global stock amid renewed concerns over slowing growth in China, the biggest consumer of metals.

Asian markets were also affected after a private survey showed that China's factory output shrank for the seventh straight month to its weakest level in 6-1/2 years.