Reflecting the nervousness on account of long outstanding positions at the pivotals with unrealistic exposures made at the software and pharma counters saw the index move in the band of 4,179.44 and 4,322 the intra-day's low and high respectively.

The first day of the trading cycle on the NSE saw the Nifty dip by 1.95 points to close at 1,210.80 points. NSE recorded a turnover of Rs 1,856.87 crore. The most interesting phenomenon of the day's session was about 240 stocks attracting circuit filters on the exchange.

``Market was overheated for a long time and today's correction which wasinevitable, should be considered as a healthy sign for the market,'' said Ramesh S Damani, a BSE broker.

According to technical analysts, the nervousness in the market constantly grew over the rising differences in the cross exchange rates. ``The rising discrepancies in the prices of pivotals at the BSE, NSE and Calcutta exchanges with the badla rates zooming to unwarranted heights provided the base for today's correction,'' said the chief of dealing of an FII brokerage firm.

Rumours of UTI, GIC and LIC having reportedly pressed sales at the counters of software stocks saw most of these counters trade at lower ends of the price bands on the local bourses.

DSQ Software, Onward Technology, CMC, HCL Infotech, Satyam Computers, Pentafour Software and NIIT which hogged the limelight during past five trading sessions on account of one-way buy bids fell flat on continuous bouts of sales.

According to market sources, the institutional sales which kicked off in the form of profit booking unnerved the brokingcommunity who had taken huge positions based on market perception in the absence of fundamental valuations.

The selling at the software counters was accompanied by huge volumes at these counters. Satyam Computers accounted for a phenomenal volume of 12.53 lakh shares with the stock value falling by over 9 per cent to close at Rs 490.25, Pentafour Software saw a huge volume of 4.42 lakh shares, BFL Software (1.92 lakh shares) and Software Solutions ( 3.98 lakh shares).

The weak undertone in the market failed to curb the rise in the volumes at the Reliance counter. About 2 crore shares exchanged hands on the local bourses with the stock trading in the band of Rs 195 and Rs 204.50, the intra-day's low and high respectively, to finally close at Rs 195 on the BSE. However, on the NSE the stock closed higher at Rs 198.05 on account of the first day of the trading cycle.

Renewed perception about the cement industry and an expected correction in the performance of the industry in the fiscal year 1998-99, sawACC trade on a firm note at Rs 1,550.

The first phase of the upward market rally to breach the 4,300 mark was contributed by the MNC counters which continued their upward march.

Britannia touched a new 52-week high of Rs 614 but due to profit-booking closed lower at Rs 566.75. Burroughs Wellcome also closed lower at Rs 391.25 after touching a new 52 week high of Rs 436.75. Similarly, Cadbury's touched a new high of Rs 429 to finally close at Rs 395.