Mumbai, May 10: The markets witnessed a downtrend for the fifth straight session on Friday with the benchmark Sensex dropping over 340 points to close below 17000 level as a further rise in inflation dampened the trading sentiment.

The 30-share Sensex on the Bombay Stock Exchange ended the day at 16737.07, a loss of 343.58 points from its previous close.

The BSE barometer has shed 863 points, or five per cent, during the week.

The broader 50-share S&P CNX Nifty of the National Stock Exchange also fell further by 99.10 points or 1.95 per cent to close at 4982.60.

Marketmen said inflation, which rose to 42-week high of 7.61 per cent for the week ended April 26, and rising crude oil prices were the key factors behind the sharp slide.

Certain other factors such as weak global cues, worries about widening trade deficitimpacted the market sentiments, they added.

After three days of steep fall, the rupee recovered to 41.59 against the dollar on Friday. It closed at 41.77 on Thursday. Smart recovery in Sensex after initial weakness also helped the rupee to rise.

In quite trade at the interbank foreign exchange market, the rupee opened higher at 41.68/69. - PTI