Interestingly, while the market participants eagerly awaited positive signals from the US Senate in terms of the signing of the CTBT, the market failed to react in the required manner on Tuesday. This was attributed to the negative news from UTI. According to market sources, UTI was reported to have resorted to distress sales at the counters of ITC, Cochin Refineries, MTNL and ICICI.

Institutional investors continued to remain net sellers on the local bourses, with the FIIs selling to the tune of Rs 38 crore and the FIs sold stocks worth Rs 27 crore. Most of the sales were however pressed on the BSE where the prices wereslightly higher over the prices prevailing at the NSE.``One cannot dismiss off the positive impact of the waiver option given by US Senate to the US president,'' said Arun Kejriwal, chief dealer of Woodstock Securities, while highlighting the sharp fall in the index only during the last phase of the trading session in the presence of huge long positions on the bourses.

According to market participants, the BSE-30 index dipped from a high of 3,166 points to a low of 3,126 points only during the last half an hour and further recovered by 20 points towards the end to close at 3,146 on account of short covering. The upward march of info-tech and pharma stocks was curtailed on Tuesday with bull operators liquidating a considerable chunk to book profits at the higher levels. Among the pharma counters, Glaxo touched a new 52 week high of Rs 497.65, however sales pressed during the last half an hour saw the stock close at a low of Rs 469. Similarly, Novartis closed at Rs 616 after touching the day's high of Rs 630,Burroughs Welcome closed at Rs 501 a shade lower over its previous close after touching a new high of Rs 518.50 and Wyethe Ledearle closed at Rs 580.50 after attaining a high of Rs 615 during the mid session.

A considerable chunk of these stocks according to market sources, was supplied by domestic institutions like UTI, SBI Mutual fund and Canbank Mutual fund, which reflected on their status at the end of the trading session. According to market sources, FIIs like Morgan Stanley who were rumoured to have bought huge chunks of the several info-tech, pharma and refinery stocks during the past couple of sessions to prop up their NAVs were reported to have provided supplies at the higher levels.

Institutional sales also mirrored in the bulk and cross deals reported on the BSE on Tuesday. About 23 deals were reported on the BSE, which were transacted at a discount to the market price.

Two bulk deals were reported at the counter of Satyam Computers, each of 12,200 shares, however one deal was transacted at aprice of Rs 575 and the other at a price of Rs 600. Interestingly among the volatile movers, Satyam also recorded a historic jump from the day's low of Rs 560 to touch an intra-day's high of Rs 612.50, however finally closed at Rs 567, with a phenomenal volumes of over 1.5 crore shares traded on the local bourses.Another stock which was hammered down to the day's lowest bid was ICICI.

According to analysts, the perception of both domestic and FIIs has turned negative considering the rise in the NPAs on the institutions books.