Reflecting the uncertain mood of the market in the absence of institutional support, the BSE-30 index, which opened with a gap of 67 points, failed to sustain above the 4,100-mark and closed at 4,085.93, registering a loss of 32.36 points.

According to sources, UTI was reported to have aggressive purchased towards the last phase of the session at select counters of ITC, Bajaj Auto, Tata Tea, Tisco, SBI and HLL.

The exchange's turnover at Rs 1,358 plunged by 22 per cent over Friday's historic Rs 1,750 recorded on Friday. The panic selling at the local bourses was attributed to the squaring up of positions by local and foreign punters on the last day of settlement on the NSE.

Failing to react positively to the RBI measure on the lowering of YTM. UTI was said to have made anattempt to absorb the sales at the counter of SBI. The stock, however, continued to be traded below the Rs 300 mark between Rs 293.50 and Rs 299.50, the intra-day's low and high respectively. It finally closed at Rs 294.75 registering a loss of 2.01 per cent over Friday's close of Rs 301 on the BSE. On the NSE, the stock further fell by 3.37 per cent to close at Rs 291.30. Interestingly, SBI continued to be traded on a firm note at Rs 295/295.75 at the kerb. Similarly, in the case of software stocks, the announcement of the exim policy which favours the software imports, failed to enthuse the markets. Infact, according to sources, operators rushed to square off their long outstanding positions at the software industry counters. Satyam Computers fell by 7.35 per cent to close at Rs 340.25 on the BSE, Infosys Technology also registered a loss of 7.05 per cent to close at Rs 1,927.75.

Other index-based stocks like Apollo Tyres, Bombay Dyeing, BPL, Britannia, Hero Honda and ICICI Banking touched their new52-week high.

According to technical analysts, the market has to undergo a necessary correction of 100-150 points to bounce back to 3,876 level before moving up again.