The bloodbath continued for the second day on Dalal Street as heavy-selling FIIs saw blue chip heavyweight stocks butchered. India has lost flavour with FIIs at present with unresolved issues like inflation, high interest rates, stalemate in policy decisions at the government level and various high-profile scams, like the bribes for loans scam, involving big names.
The FIIs find United States markets more favourable in comparison with the dollar that is strengthening on signs of economic recovery.
The Sensex plunged 467.69 points on Monday after losing 493 points on Friday. It closed at 19,224 while the Nifty closed at 5,763, down 142 points.
There was panic selling, according to some analysts, with just 162 stocks closing positive and 1,161 closing in the red.