NEW DELHI: It took just eight sessions for BSE benchmark Sensex to wipe out all the gains that it had notched up in the 10 months till November 8 of this calendar.On Monday, the domestic equity market wiped off all the gains of the calendar year, after several brokerage houses downgraded the market and slashed Sensex targets on account of lingering worries over the cash squeeze in the domestic economy and outflow of foreign institutional investment amid fears of a rate hike by the US Federal Reserve.The BSE Sensex settled 385.10 points, or 1.47 per cent lower at 25,765.14 on Monday. On December 31, 2015, the Sensex had closed at 26,117.Foreign institutional investors have been on a selling spree since October 2016 and have offloaded shares worth of Rs 14,147 crore in last one-and-a-half months till November 18. However, on a year-to-date basis, their net investment stood at Rs 37,147 crore till date. Deutsche Bank believes the Sensex may close Calendar 2016 around 4 per cent down at 25,000. The global financial services firm has cut its December-end Sensex target from 27,000 earlier, on the ground that the domestic market will not remain immune to FII outflows from emerging markets despite an improvement in the balance of payments situation.G Chokkalingam, Founder, Equinomics Research and Advisors, said: “I believe the market may end the year 2016 in the red after the recent selloff. However, this is the right time to invest in the Indian market, as most of the stocks are available at attractive valuations. We may see a recovery after January 31, 2017.”Independent market expert Ajay Bagga said in an interview with ETNow, “The big selloff in the market can be attributed to a couple of factors, such as the political situation which seems to be deteriorating and puts a question mark on GST if this Parliament session gets into a logjam. The second part is the impact of demonetisation on the economy. The third include global issues such as a rate hike by the US Fed, which looks like a certainty on December 14 and which is leading to some FII outflow. But there has been consistent buying from DII, so I do not see any prolonged downturn in the market. I suggest investors to wait and watch as this market will create good opportunities to buy stocks cheaper.”