The BSE benchmark Sensex fell sharply on Friday by over 295 points to 18,211.52, as weekend profit booking across the spectrum pulled down the stock markets amid weak cues from overseas peers and the widening probe in the 2G spectrum allocation scam.

Both the key indices, Sensex and Nifty, fell by 1.6 per cent after decent gains in the past five sessions.

The Bombay Stock Exchange 30-share barometer opened higher and touched a three-week high of 18,690.97, up by over 184 points.

However, it fell back on profit-booking amid weak cues from European markets to settle the day at 18,211.52, displaying a net fall of 295.30 points or 1.60 per cent.

The Sensex had jumped by 1,043.78 points or 5.98 per cent in the past five sessions.

Similarly, the 50-issue Nifty of the National Stock Exchange also dipped by 87.50 points or 1.58 per cent to settle at 5,458.95.

Selling was so strong that all 13 sectoral indices closed in the negative terrain, down between 4.04 per cent and 0.69 per cent with the realty, auto and refinery segments as the pace-setters of the decline.

Marketmen said the overall sentiment was dampened by CBI raids in the offices and residences of top management of DMK first-family run Kalaignar TV in connection with the 2G spectrum scam.

Stocks of RCom tumbled 6.80 per cent to Rs 93.15 on massive selling, in view of the scam.

Marked fall in ICICI Bank, L&T, RIL, Tata Motor, ONGC, ITC, TCS, Tata Steel, Bharti Airtel, M&M, HDFC, Infosys Tech and SBI mainly weighed on the Sensex.

“After gains in five straight sessions markets ended lower by more than a percent coupled with rise in volumes. Major laggards were the infrastructure stocks as the concerns over recent scams resurfaced,” said Motilal Oswal Securities Manager & Analyst Derivatives Bhavin Desai.