Mumbai, Nov. 19: Shares extended losses today as fears that foreign institutional investors (FIIs) would suck out their cash due to year-end repatriation of funds mounted in the face of numbers showing a tail-off.
The BSE sensex shed 67.40 points, or 1.38 per cent, to end at 4823.73 against 4891.13 on Tuesday. Operators unwound their stock holdings, selling them now rather than risk taking a hit when prices of shares tumble further in over a month.
The fall also led to a situation where institutional investors, local and foreign, waited for steeper declines before they commit more funds into the markets.
What jangled nerves more were figures that showed FIIs net sellers in Monday’s stock-exchange trading.
Foreign funds generally book-profits and pay handsome dividends to their investors in December, also a month when fund managers are known to go on leave. All this coincides with heightened redemption pressures.
In the A group of BSE, 153 shares, including 27 from the index, registered sharp to moderate reverses, while only 45 stocks scraped through the session with gains.
Among the market-moving shares to shed value were Reliance, Hindustan Lever, Grasim, Bhel, L&T, ACC, ICICI Bank and Zee.