Mumbai: Equities witnessed depressed trend pushing the SENSEX by another 2.81 per cent over the week in lacklustre activity on the Bombay Stock Exchange (BSE) on continuous sell-off by speculators and retail investors while foreign funds had considerably slowed down activity.

The prime factor for operators' sudden cautious attitude at a time when normalcy was reportedly returning fast to the temple town of Ayodhya after "shila daan" programme in the earlier week by Vishwa Hindu Parishad (VHP), was believed to be the accounting yearend that forced speculators to dilute positions as well as a statement by the Prime Minister Atal Behari Vajpayee in the Rajya Sabha that the country was passing through a difficult phase as regards economy.

Domestic funds which generally were conspicuous by their absence in the latter part were also believed to have booked profits in key stocks in a bid to mop up funds to meet anticipated redemption pressure.

Concerns over on-going political uncertainty following threats by some key allies in the BJP-led coalition government at the centre on the Hindutva issue was also attributed to cautious approach by investors which expressed fears that the T+3 settlement system being introduced from April 1, would compel them to take delivery of shares as it will reduce the period of Pay-in and Pay-out.

Foreign Institutional Investors (FIIs) were consistent net buyers, though in small quantity, mainly in second-rung counters, remained net sellers to the tune of Rs 21 crore between March 18 and 21.

PTI