Markets see worst weekly setback since May, Sensex off 7.8% from peak

FPIs sell Rs 5,931 crore on Friday, most since March

The benchmark indices fell for the sixth session on the trot, amid sustained selling by overseas investors. Weakness in global markets owing to the delay in US stimulus, disappointing Covid-19 trends, and uncertainty around the Union Budget have taken the wind out of domestic equities’ sails after the Sensex topped the historic 50,000-mark in intra-day trade on January 20.

Since then, the index has given up 7.8 per cent, as foreign portfolio investors (FPIs) — a key driver of domestic equities — have headed for the exit door.

On Friday, the Sensex shed another 588 points, or 1.26 per cent —  its