Mumbai: A fresh onslaught by foreign funds trampled stocks and sent the SENSEX reeling down to four and half month low at 3,048.72 at close on the Bombay Stock Exchange (BSE) on March 31, as the shadow of a prolonged Gulf war dimmed prospects for global economic recovery.

Foreign institutional investors (FIIs) reportedly had stepped sales at the last session of the fiscal, targeting many of blue-chip counters including IT sector.

As a result, the BSE benchmark 30-share index ended sharply lower by 66.72 points at the four-and-half-month low at 3,048.72 as against March 28 close of 3,115.44, after dipping to the intra-day low of 3,039.83.

Heavyweight counters like RIL, HLL, Infosys Tech, SBI, Satyam Computers, HCL Tech and HPCL registered sharp falls on heavy selling by foreign funds which were believed to have attempted to hammer down prices at the year's last session.

Attributing heavy sell-off by FIIs throughout to serious concerns over the US-led military assault against Iraq, which is being prolonged, stocks brokers said even oil prices rose further in Asian trade.

Software counters including second-line stocks bore the brunt of selling by foreign funds.

Domestic financial institutions absorbed a small portion of sales made by FIIs in a bid to keep the net asset value of their units at the end of the financial year.

In the specified group, 168 including 26 index-based counters registered sharp to moderate losses while 23 others closed with gains.

PTI