Markets plunge on weak results, FPI surcharge; Sensex drops 560 points

Both the indices - Sensex and Nifty - posted their biggest single-day fall in two weeks, even as other global markets gained on hopes of an interest rate cut by the US Federal Reserve

The benchmark indices on Friday dropped 1.5 per cent after the government refused to provide any relief to overseas investors on the higher tax surcharge announced in the Union Budget. Weak corporate earnings and a subdued outlook, particularly from private sector lenders, further dampened investor sentiment.

The Sensex closed at 38,337, down 561 points, or 1.44 per cent, while the Nifty ended at 11,419, down 178 points or 1.53 per cent. Both the indices posted their biggest single-day fall in two weeks, even as other global markets gained on hopes of an interest rate cut by the US Federal Reserve.