MUMBAI: The benchmark Sensex frittered away early gains and tanked 348 points to log its worst weekly drop since December 2011 on disappointment over Narendra Modi government's maiden Budget and debt concerns in Portugal. In straight four days of decline, the 30-share Sensex has shed a massive 1,075.73 points, or 4.12 percent.

Investor wealth worth over 5 lakh crore has been eroded in this extended sell-off. For the week, the BSE barometer has slumped 937.71 points, or 3.61 percent. Realty, capital goods, power, metal, refinery and banking shares mainly dragged down the Sensex today. IT shares, however, saw buying interest after Q1 results by Infosys. The firm reported a 21.6 percent y-o-y growth in consolidated net profit for the quarter ended June 30. Initially, the BSE index resumed better and touched a high of 25,548.33, showing a rise of over 175 points. Fresh concerns over Eurozone debt resurfaced as reports said Portugal's biggest listed bank, Banco Espirito Santo, missed debt payments.

Coupled with Budget disappointment, the Sensex then succumbed to heavy selling and tumbled to a low of 24,978.33, before ending at over 1-month low of 25,024.35 -- a fall of 348.40 points or 1.37 percent over Thursday. "Markets are disappointed on the fiscal consolidation front. Budget didn't speak anything about rationalisation of subsidies which was widely expected by most market players," said Rakesh Goyal, Sr. Vice President, Bonanza Portfolio.

The 50-issue CNX Nifty of the NSE today also moved in a wide range of 7,625.85 and 7,447.20 before settling at 7,459.60, a net fall of 108.15 points or 1.43 percent. "Adding to the negativity, weak rainfall in India during the ongoing monsoon season has raised concerns of a first drought in five years. There was also nervousness ahead of May IIP data and June CPI data, scheduled to be released later in the evening," said Jayant Manglik, President-retail distribution, Religare Securities. For the week, Nifty fell 292 points or 3.76 percent --its worst weekly drop in 16 months (since March 2013). Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 993.97 crore yesterday, as per SEBI data. MORE PTI VMP RSU KSR 07111700 NNNN