Sensex loses 261 more points as FII assault continues

Hit by consistent foreign fund outflows, the benchmark BSE Sensex on Monday dived by 261 points to end the day at 27,176.99 to a fresh three-and-a-half months low on tax worries and lower-than-expected fourth quarter earnings by corporates so far.

The market has fallen in eight of the last ten trading sessions and has wiped out a total Rs 7.73 lakh crore investors' wealth since April 15. Foreign portfolio investors sold shares worth Rs 775.46 crore on Friday, as per provisional data.

"In absence of positive triggers, the bias was subdued from the beginning. Besides, cautiousness at the start of F&O expiry week and not so encouraging earnings from corporate also weighed on the sentiment," said Jayan Manglik, President-retail distribution at Religare Securities. Sentiment remained largely weak on continued capital outflows by foreign investor over taxation worries, traders said.