Sensex lost over 850 points in past two sessions as the government ruled out any possibility of a roll-back of increase in tax surcharge for the super-rich in the Budget. Also Read - Market News Today, July 13: Sensex Reclaims Gains at 400 Pts Higher, Nifty up by 123 Pts in Early Trade

Since, July 5, when the Union Budget was proposed, Foreign Portfolio Investors (FPIs) have been in a sell mode, but it intensified after Finance Minister Nirmala Sitharaman on Thursday made it clear, the super-rich tax is here to stay. Also Read - Market Today: Sensex Opens 266 Pts Higher at 36,110; Nifty Tops 10,600-mark in Early Trade Hours

FIIs have sold of Rs 6,475.55 crore worth of stocks in June, till date, the most in a month in 2019. The selling was most intense on Thursday (Rs 1,404.86) and Friday (Rs 950.15) after Sitharaman dashed hopes of any relief to FPI’s in her reply to a debate on Budget proposals in the lower house. Also Read - Share Market Holidays in July 2020: Here's The Complete List of Days Stock Market Will Remain Closed

Sensex finished Monday’s trade 305.88 points lower at 38,031.13 while the broader Nifty closed 82.10 points lower at 11,337.15. The Sensex had shed 560 points on Friday.

Vinod Nair of Geojit Financial Services suggested further pain saying “this correction has expanded to large caps which until now were attracting FII inflows, but concerns over tax and muted Q1 results will continue to impact…”

“Market entered into a bearish phase as investors turned sellers due to concerns over the extension of economic slowdown and weak corporate earnings hurting the sentiment,” Nair added.