Mumbai: Contrary to expectations, US Fed Reserve's second major rate cut within a span of eight days did not impact the domestic stock market with benchmark Sensex ending lower by 110 points, extending losses for the fourth consecutive day today.

US Federal Reserve yesterday slashed interest rate by another 50 basis points after a surprising 0.75 per cent sharp rate cut on January 22. Global markets too failed to get any support from the Fed's decision. Market observers said US financial markets are still under considerable stress leading to fears about the health of the world's largest economy.

On the domestic front, marketmen said, investors opting to square of their positions in Futures Option segment also weighed down on the Sensex. The 30-share BSE barometer ended the day 109.93 points, or 0.62 per cent lower, at 17,648.71 points from its last close. During the intra-day, the Sensex moved wildly between 18,008.71 and 17,417.63 points during the day, reflecting volatility.

The market though found temporary respite for a brief time with Sensex rising by over 250 points in the afternoon trade after the announcement by the government that the economy grew by 9.6 per cent in 2006-07. However, bears tightened their grip as the market technicals remained negative, said marketmen. Market participants said the market was highly volatile as investors opted to square off their positions in Futures Options with the expiry of January series.

They added that foreign institutional investors (FIIs) wound up thier arbitrary positions in FO while pulling out heavily from equity. The broad-based Nifty of the National Stock Exchange, too dipped by 30.15 points or 0.58 per cent to close at 5,137.45 from previous close of 5,167.60.

Source : Agencies