Indian stock markets declined on Friday on account of profit booking and FII redemption.

The BSE Sensex lost 441 points to end the week at 18,008, whilst the broad-based Nifty dropped 131 points to shut the shop below 5,400 levels.

The Nifty has dropped below the 5,400 levels for the first time during the last six months. On July 30, 2010 the Nifty ended at 5,367.60.

Market analysts stated that the decline was not unexpected as shareholders are eyeing to book profit at every chance.

The Sensex ended 359 points up on Thursday.

According to Deven Choksey of K R Choksey Securities, "The direction of the Nifty cannot be predicted. At every rise, FIIs are booking profits to invest in dollar assets." The participation is missing in the markets but the markets are nearing their bottom, he added.

Ambareesh Baliga of Karvy Stock Broking stated that the Nifty can slip all the way to 5,100 levels where investments by domestic institutions, especially insurance firms, which accept a big portion of their premiums in February and March, can sustain the markets.

Baliga said, "We have seen $1.5 billion of hot money move out of the markets and another $2.5-3 billion is likely to move out."

Delineating the causes behind the FII outflow, Robert Parker, Vice Chairman of Credit Suisse Asset Management said there is a constituent of profit booking in rising markets such as India owing to the quickening in the American financial system and stiffening of monetary plan in these growing markets.

The selling was broad based and all sectoral indices closed in the red.

Real estate scrips witnessed bigger cuts. DB Realty slipped 10% and Unitech dropped 7% after being named by CBI in the current 2G searches. On the 30-share index BSE Sensex, only one stock out of the 30 gained.