Domestic shares logged their third weekly fall in a row as the Sensex lost 654.71 points or 2.49 percent and Nifty dropped 192.05 points or 2.41 percent during the week.

The short trading week ended on a negative note as two macroeconomic data stoked fears that Indian economy is still not out of the woods.

Industrial production slackened to a four-month low of 3.6 percent while retail inflation inched up to 5 per cent, government data showed yesterday. Today's sixth fall in seven sessions was in part a result of muted global cues, triggered by commodity prices tumbling to multi-year lows. Consequently, massive sell-off was seen in Asian and European markets.

"Bears continue to tighten grip in line with poor global cues, and markets thereby, fell on fears of a rate hike by Fed next month," said Gaurav Jain Director Hem Securities.

The BSE Sensex stayed in the negative zone through out the day and touched a low of 25,540.73 before winding up 256.42 points or 0.99 percent down at 25,610.53, its weakest closing since September 11.

On Wednesday, the index had risen by 123.69 points in a brief special Muhurat trading session on the opening day of the Hindu year Samvat 2072.

The 50-issue NSE Nifty cracked below the 7,800-mark by plunging 62.75 points or 0.80 percent to close at 7,762.25. Intra-day, it hovered between 7,730.90 and 7,775.10. Stock exchanges were closed yesterday on account of 'Diwali Balipratipada'.

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