Tuesday, April 25 2006 12:41 Hrs (IST) - World Time -

Mumbai: The Bombay Stock Exchange (BSE) Benchmark 30-share Index dropped further to 11,782.07 pointsat noon, a fall of 133 points amid indications that retail investors will drastically cut derivatives positions.

After opening firm at 11,943.08 points, the Sensex turned weak and fell sharply to a low of 11,765.07 points beforebeing quoted at 11,782.07 at noon, sharply down from yesterday's close of 11,915.24 points.

Operators and retail traders, which had built up heavy positions during last week's bull run, were believed to be off-loading part of their holdings in the futures following a decision to hike the Cash and Futures margins.

The National Stock Exchange (NSE) yesterday decided to increase margins in both the Cash and derivatives segment with effect from April 28.

The step seems to have triggered selling by traders ahead of the expiry of April contract on Thursday.