Mumbai, Jan 29 (Agencies): Low corporate earnings and heavy capital outflows by foreign funds brought the Sensex down by massive 611.56 points also leading to fear of further hike in interest rates.

Interest rate sensitive sectors banking, auto and realty stocks declined as investors fretted over the possibility of more interest rate hikes by the Reserve Bank of India (RBI) to tame inflation.

Volatility was high during the week as traders rolled over positions in the derivatives segment from January 2011 series to February 2011 series. The near-month January 2011 contracts ended on Thursday.

The Bombay Stock Exchange (BSE) Small and Mid-cap indices underperformed the Sensex. The mood was bearish with the market logging declines in three out of four trading sessions.

Foreign funds have dumped shares worth a net Rs 7,983.20 crore in this month (till 28 January), as per data from the stock exchanges. Domestic funds have absorbed a part of the selling from foreign funds, with a inflow of Rs 4,229.02 crore.