Down again: Sensex sheds 2,100 pts in just 10 sessions

Global Sell-Off And End-Of-The-Year Profit-Taking By FIIs Inflict Heavy Damage On The Market Mumbai: A combination of global and local factors is pulling the stock markets down in every session. On Tuesday, as the global markets showed renewed weakness, the BSE sensex lost another 491 points to close at 15,405, its lowest close in two months. With 2,100 points lost in just ten sessions, market players now fear that brokers might start demanding extra funds from speculators who trade on borrowed money (margin calls in market parlance), which could pull the index down further.      On Tuesday, sensex opened marginally lower, but soon touched a high at 15,957, up 60 points from its Friday close and remained in a narrow range for most part. The major selling started at about 2pm and within the next one-and-half-hour, panic gripped the market and the sensex was down nearly 570 points to 15,331. The day's close was about 70 points off the low.      BSE data showed that while FIIs net sold shares worth Rs 876 crore, domestic institutions were net buyers at Rs 752 crore. Since Diwali the FIIs, the most powerful group of investors, have taken nearly $1 billion off the secondary market.      There are several factors which are affecting the market sentiment, analysts said. "While the current global sell-off and end-of-the-year profit taking by FIIs are taking a heavy toll on the market, the recent SLR hike by RBI is an indication that the easymoney policy has ended,'' a top official at Alchemy Share & Stock Brokers. In addition, "mutual funds are not witnessing much inflows into their equity funds, thus limiting their ability to buy in the stock market,'' said a top broking house official.      Dealers pointed out despite the day's hectic selling, turnover was not high. On BSE's cash segment, the day's turnover at Rs 5,121 crore was much lower than last month's average daily figure of Rs 5,700 crore. "This indicates that not everyone who wanted to exit, has got a chance to do that,'' said head of an investment advisory firm. "Sharp fall with strong volumes is a good sign for the market. Since that has not happened, I expect more selling tomorrow (Wednesday),'' added the investment advisor.      Among the frontline sensex losers were Reliance Industries, down 5.7% at Rs 1,821. Of the 30 sensex shares, only three—Bharti, Maruti and Sun Pharma—ended higher, while 27 ended lower which also included frontline stocks like SBI, NTPC and Infosys. In the broader market, there were 2,171 laggards compared to 534 losers.  Rupee dips against dollar  Snapping a two-session rally, the rupee on Tuesday fell sharply by 44 paise at 47.42 against the US dollar on signs of increased capital outflows amid weak domestic bourses, report agencies.      Forex dealers said a firm dollar overseas against a basket of currencies also put pressure on the local unit. They attributed the drop in the rupee value to distinctly weak trend in the stock markets. Sustained slide in local stocks raised fears of more capital outflows, they said.