The Bombay Stock Exchange benchmark Sensex today dropped to more than two-year low, down 365 points, as investors squared off positions ahead of the monthly settlement in derivative contracts amid heavy fund outflows and weak global markets.

The 30-share BSE index Sensex, which gained 119 points yesterday, fell 365.45 points to 15,699.97 — a level seen on November 3, 2009. It had touched a low of 15,478.69 before the partial recovery. Before yesterday’s gain, the market had lost nearly 10 per cent in eight straight sessions.

Similarly, the broad-based National Stock Exchange index Nifty tumbled 105.90 to 4,706.45, after touching 4,640.95.

Brokers said investors sold heavily while clearing the pending positions ahead of tomorrow’s settlement in monthly derivative contracts amid weak cues from Asian and European equity markets.

IT, industrial and financial stocks led the slide on weak global trend as the US economy expanded at a rate below market expectations during the third quarter, they added.

The overall market fall was cushioned somewhat as the shares of telecom operator RCom and real estate firms DB Realty and Unitech recovered after the Supreme Court granted bail to their executives in the 2G spectrum case.

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