Sensex logs second biggest fall of 769 pts

MUMBAI: Is this the December effect, of global fund managers taking their profits and running? That’s the question which comes to mind if one looks at the pummelling that equity markets across Asia witnessed on Wednesday.

In India, the Sensex shed 769.48 points, its second-largest drop ever, to close at 19,261.35. The Nifty had its worst day ever, closing 270.70 points down at 5,777.

A section of the market feels that global fund managers who made a killing this year in Asian markets, don’t want to wait for the year end. Locking in whatever gains they’ve made till now — 39.71% year-to-date if they had invested in Sensex stocks — is more than enough to guarantee fat bonus cheques.

So, investors need not worry if foreign fund managers are selling. Further, if history is on the market’s side, then this December may not be the one to rue about. In eight out of the last 10 years, the Sensex has gained in December.