Derivatives expiry drags Sensex 740 points

The March series derivative expiry proved enervating for stock markets. On the final day on Thursday, Sensex fell 740 points or 1.51 per cent to 48,440. The broader index Nifty of the National Stock Exchange declined by 224 points or 1.54 per cent to close at 14,324. Global stock markets, too, have been lacklustre and buying by foreign portfolio investors (FPIs) seems to be lacking force compared to the selling by domestic institutions and high net worth individuals, analysts said.

FPIs sold stocks worth ₹3,383 crore in the cash segment on Thursday. For the entire month, however, they are still net buyers of ₹2,211 crore.

Derivative expiry often witnesses heightened trading and volatility. The Nifty swung nearly 300 points during the day.