The Sensex opened at 3214.42 points and fell below the 3200-mark to touch the day's low of 3155.13 points before closing at 3168.82, with a net a loss of 39.72 points against the previous close of 3208.54 points. Brokers generally welcomed the Sebi's decision to lift the ban on short sales from July 6 and expected some market movements next week. The profit-taking was due to absence of foreign funds and limited buying by domestic financial institutions.

The selling was partially attributed to fresh political developments. Financial institutions, however, made some purchases in key scrips. Bulls were not willing to carry forward their positions in the next settlement in view of increased margins from 10 percent to 15 per cent. The total business volume declined to Rs 667.76 crore.

On the National Stock Exchange (NSE), pivotals suffered a moderate setback in a lackluster trading. NSE-50 opened marginally lower at 931.80 and rose further to touch a day's high of 932.50, fell to touch a day's low of 914.45 and finally closed at 924.35, showing a net loss of 7.80 points against the previous close of 932.15 points. Midcap, after a better start at 1340.20 drifted lower to close at 1331.50, netting a loss of 7.65 points against the previous close of 1338.65. The market displayed a lower turnover of Rs 808.39 crore.