A major sell-off gripped Dalal Street on Thursday as investors rolled over their positions in the derivatives market and squared up their cash market positions. Disappointing Q2 results by some companies and weakness in global markets added to the selling pressure.The 30-share BSE Sensex tanked 176.20 points or 2.1 per cent to settle at 7,798.49 — its lowest level in nearly two months since August 30, 2005. The S&P CNX Nifty lost 55.60 points or 2.3 per cent to 2,352.90.Disappointing results from SBI and lower than expected results from cellular services major Bharti Tele-Ventures triggered the sharp fall. Both Bharti Tele-ventures and SBI plunged following the results announcement.Foreign funds also pressed heavy sales. The latest data showed that FIIs sold shares worth a net Rs 453.60 crore on Wednesday, the day when Sensex shed 17 points in volatile trade. The heavy FII selling has caused a major correction on the bourses in the past few days with the Sensex tumbling to a 2-month low on Thursday. From a lifetime closing high of 8,799.96 on October 4, the Sensex has lost 1,001.47 points or 11.3 per cent to the current 7,798.49.Jigar Shah, portfolio manager, Motilal Oswal, said FIIs and domestic investors squared up their positions on the last day as a negative sentiment was prevailing in the market. ‘‘The near-month derivatives contracts expire on the last Thursday of every month. With bears getting the upper hand, selling pressure intensified,’’ said another dealer.
