The stock market of India continues to feel the heat of FII selloff as the market extended the bloodbath for second straight trade session on Monday. The BSE Sensex dipped 305 points and closed at 38,031 levels while the Nifty 50 index nosedived 82 points and closed at 11,337 levels. Bank Nifty index also witnessed heavy selloff and crashed 495 points after closing at 29,275 levels. YES Bank, Avanti Feeds, Dish TV India, Kaveri Seed Company and Manpasand Beverage were the top gaining stocks while Indiabulls Real Estate, L&T Technology Services, Just Dial, Mahindra CIE Auto and Zensar Technologies were the top losing stocks on Monday.

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Commenting upon the current freefall in the markets Rajiv Singh, CEO, Karvy Stock Broking said, "Market has been falling since the Budget day as FIIs have started selling after the "super-rich tax" was announced. On Thursday, once Finance Minister clarified in the parliament that there is no relief for FPIs registered as Trust, all hopes were dashed and the selling has further accentuated. In the meantime, the market has also started factoring in weak corporate results, slow progress of monsoon, lack of any stimulus package from Govt to spur consumption slowdown & no concrete steps being taken by the Govt to address a liquidity crunch. This is besides the possibility of Trade War causing global slowdown and money moving towards precious metals like Gold." He said that today's fall was caused by follow on selling by FIIs in the index heavyweights besides weak global cues. Market is also bracing for the disappointment which may be caused by only 25 bps rate cut by the US Fed as against earlier expectation of 50 bps cut.

He said that the beaten-down stocks from sectors like Auto, Pharma & Metals have seen pull back rally in today's trade. Even technically, based on derivatives data, today Nifty looked weak with next support levels placed at 11280-11300, and resistance at 11550-11600. Most stock specific actions are likely this week on the back of their quarterly results. However, we do not see Nifty going down below 11100 during the current leg of correction.

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Standing in sync with the Karvy's expert's views Prakash Pandey, Head of research at Fairwealth Securities said, "The market is crashing because the budget surcharge being levied on the FPI's have not gone down well among the FIIs and they are selling their stocks and coming out of their holdings. Last week, Finance Minister Nirmala Sitharaman announced that there is no backtrack on the surcharge that has triggered the market tank further. Currently, the market has strong support at 11,250 but if it breaks these levels, the market would be further bearish and can go down up to 10,750 levels in a very short time frame."

Banking and financial stocks led the bloodbath on Dalal Street as the BSE Finance index went down 2.28 per cent in the intraday trade. Finance major Bajaj Finserv share price crashed 5.47 per cent, shares of Bandhan Bank dipped 5.34 per cent, Can Fin Homes counter went southward 3.39 per cent, Capital Trust scrip crashed 9.98 per cent, DHFL stock dipped 2.25 per cent, Edelweiss Financial Services nosedived 6.12 per cent while GRUH Finance went off 4.11 per cent.

In banking sector yes Bank stocks shot up over 9 per cent, RBL Bank share price crashed 4.46 per cent, shares pf Kotak Mahindra Bank dipped over 3 per cent, HDFC Bank and Federal Bank scrips went off near 3.25 per cent while City Union Bank and State Bank of India lost around 1.5 per cent in the intraday trade.

Among Asian markets, the Japanese Nikkei 225 index went off 0.23 per cent, South Korean Kospi went down 0.05 per cent, Hang Seng crashed 1.37 per cent while the Shanghai market went down 1.27 per cent in the intraday trade.