After breaching the psychologically important 10-K level, the Bombay Stock Exchange 30-share index fell by 7.63 per cent in the week under review as Foreign Institutional Investors pulled out at the year-end.Negative factors such as lacklustre trading in global markets in view of Christmas holidays, a sharp fall in advance tax payments and fears of poor corporate earnings in the third quarter virtually dismissed easing inflationary pressure that further raised possibility of cut in rates.In the week ending December 27, the market remained in the red throughout with the BSE barometer ending the week lower at 9,328.92 points, a net fall of 770.99 points or 7.63 per cent from its previous weekend close.The broader 50-share Nifty of the National Stock Exchange also tumbled by 220.25 points or 7.16 per cent to settle the week at 2,857.25 from its last weekend's close.The markets were under pressure mainly because of selling by Foreign funds which pulled out about 959 crore from equity including Friday's provisional number as well as fears that the Q3 corporate earnings may not be as anticipated earlier in the light of a 22 per cent fall in advance tax collection.Analysts said a slowdown in industrial growth could be one of the factors affecting advance tax payments.Controversy surrounding India's fourth largest software exporters Satyam Computer, which was barred by the World Bank from doing business with it for eight years also had a sentimental impact on the market.
