Mumbai, June 1: Equities went into yet another tailspin on Thursday, as relentless selling by foreign institutional investors (FIIs) killed the possibility of any turnaround.

After a positive beginning that saw the benchmark BSE index almost scoring a double century, foreign investors busted the party as their offloading shaved off 327 points from the sensex.

While the FII selling has largely been attributed to fresh cues emerging from the US which indicates that there could be yet another hike in interest rates, what is worrying marketmen here is that there is no buying support emerging even at the low levels.

This development was seen today when the BSE sensex began to crack after a better start. Once the downfall began, there was no turnaround.

The absence of any buying even at lower levels came despite encouraging GDP numbers, which pointed out that the India growth story is well intact. “When the markets are falling, no matter what the good news is, it cannot lead to any sustainable rise in value of equities,” said a dealer with a local brokerage.

Explaining the main reason behind today’s fall, Dilip Davda, a stock market analyst, said FIIs had been pulling out of emerging markets as there was a strong possibility of interest rates being raised by the US Federal Reserve in its next meeting. “The FIIs who are in full control of the market are selling. But mutual funds and financial institutions like the Life Insurance Corporation are not aggressive buyers as they are waiting for a better chance to grab equities at bargain rates,” he adds.

An indication of the selling mood prevalent among the foreign investor community can be ascertained from the forecasts of some of the leading players. While Nomura Securities has projected the BSE sensex to fall to 7500 levels, UBS estimates it to touch the 8800-mark.