RIL drags sensex down a day after rally, index dives 802 pts |

MUMBAI: Dalal Street investors failed on the solid gains of Monday as heavy selling by foreign funds pulled the sensex down by 802 points, or 1.1% on Tuesday to close at 71,140. Reliance Industries – which had gained nearly 7% in the previous session – along with ITC and Bajaj Finance contributed the most to the index‘s loss for the day, data on BSE showed.The day’s slide came despite some positive cues on the global front, market players said.
Foreign funds were net sellers at Rs 1,971 crore on Tuesday while domestic funds were net buyers at Rs 1,003 crore, end-of-the-session data on BSE showed. The day’s slide also left investors poorer by Rs 1.8 lakh crore, with BSE’s market capitalisation now at Rs 381.3 lakh crore.

According to Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, after opening higher, the market was off from the day’s high amid selling in index heavyweights.
Better than expected economic growth data from Europe, earnings of mega-cap companies globally and unexpected reduction in the quarterly borrowing estimate by the US Treasury department kept global markets upbeat. All eyes are now on the US Fed’s policy meeting that commenced on Tuesday and whose decision will be known late on Wednesday. The selling in the large-cap and mid-cap spaces, however, didn’t deter investors from going long on small-cap stocks.