The Nifty index crashed 54.35 points to close at 916.80 points.

The state of the GDR markets was quite the same as the Skindia GDR index recorded an all time low of 574.26 points to register a sharp fall of 9.84 per cent during mid-day session at 13.30 GMT.

"India could not be an isolated case, to the emerging market crisis,'" said Maulik Sharedalal, director of Kaji & Maulik Securities.

Disillusioned investors both local and FIIs continued to hammer sales even at lower levels, which saw the stock market indices move in the southward direction, in the absence of institutional support, especially from UTI which brokers felt, was hardly noticeable inthe market.

A senior UTI official, however, said that the Trust was as active as always and was a net buyer. "We were definitely in the market and it is wrong to say that we did not make significant purchases", said the official.

"The market was reduced to `maarkaat' with lot of brokers selling of their holdings in good stocks to make up their losses in others", said an institutional source.

GIC and LIC were rumoured to have picked up Rs 20-30 crore worth of pivotals in small chunks. This could not however, absorb the continuous bouts of sales triggered by the FIIs at the counters of ITC, MTNL, SBI, Bhel, Bajaj Auto, Cipla, ICI, Dabur, Nestle, SAIL and Procter & Gamble.

According to market sources, Capital International, Morgan Stanley and Credit Lyonnais were rumoured to have dumped stocks worth Rs 250-300 crore in a single day.

Indian markets according to experts would provide the dumping ground for disillusioned FIIs who have been burdened by the redemption pressure."The markets are depressedbecause of the threat of sanctions and the crash in Asian markets which has caught up with India as well," said Ranjan Pal, head of research of Crosby Securities.

Prominent, FIIs are believed to have had a closed door meeting over the weekend where it was felt that it is necessary for them to reduce their exposure to India.

"Sentiments in the local markets will continue to remain at the lower ebb until the payin on the NSE and BSE accomplishes on a smooth note. We need to reach at the point where the market will give out clear signals about its direction," said a BSE director, explaining the uncertainty in the market about where the bottom lies.

NSE managing director, RH Patil said that the pay-in for securities which was in progress throughout Monday, had not sent out any signal of a default. "We would have to see the pay-in of funds, however, to come to any conclusion", he said.

"The technical analysts have all been proved wrong time and again. The absence of a clear view is what has disenchantedmarket players," he explained.

More than 12 index heavy weights hit a new 52-week low on the BSE and 32 stocks were traded on the lowest end of the price bands in the absence of buyers.

Even MNCs like Nestle and Procter & Gamble were hammered down to a low of Rs 360.80 and Rs 610.40 mirroring the despair sales resorted to by the market participants.

Interestingly, Monday's fall out of 194 points left an equal if not lesser impact on the market when the index had collapsed by 303 points on March 28, 1997 on account of political turmoil and the fall of 570 points in April 1992, in the wake of the securities scam.

Rumours that Japan had closed down its forex market, also took a toll on the local sentiments.