The BSE sensitive index opened marginally lower at 3,582.35 and moved downwards to an intra-day low of 3,523.80 before closing at 3,538.17 as compared to its previous close of 3,586.80, registering a net fall of 48.63 points. The S&P CNX Nifty also lost 10.70 points to close at 1,020.35 compared to its previous close of 1,031.05.

"Brokers squared up their positions in view of political uncertainty which is expected to worsen in case of a withdrawal of support to the BJP-led government by the AIADMKbefore the beginning of the Budget session on April 15. But there is limited downslide from the current levels of 70-80 points; the market should not fall below 3,450," said Chetan Shah, a BSE broker.

"The market touched a high of 3,462 on April 6. A correction pull-up followed and the market touched a high of 3,624 on April 7 which is a 50 per cent retracement of the fall. We expect the market to test a level of 3,470 before rising briskly to touch 3,760 in the medium-term," said assistant vice-president Apple Mutual Fund, Malay Sameer.

FIIs were also conspicuous by their absence. Foreign funds slowed down their purchases foreseeing political instability. The total volume of business on BSE was substantially lower at Rs 1,107.84 crore compared with Wednesday's turnover of Rs 1,776.32 crore. While aluminium stocks moved up on aluminium manufacturers' decision to do away with discounts following the firming up of LME prices, power stocks declined on profit-taking by operators. Most other counters remainedlistless and moved in very narrow ranges.

The pivotals moved in narrow ranges, characterised by unusually low volumes. While RIL and ITC were slightly firm, SBI and Hindustan Lever declined from their previous closings. Tata group bluechips like Tisco, Telco and Tata Tea were also weak. Frontline software stocks were more or less steady at their over its previous closing with the sole exception of Pentafour Software.

Selling pressure continued on the BHEL counter as the stock touched a low of Rs 178.60 following speculative as well as institutional selling. MTNL also declined on unwinding by operators. Market players feel that the weak trend on the bourses is likely to continue in absence of any positive development.

Operators may not carry forward their long positions amid uncertain political scenario. Most brokers say the market will continue to see-saw in a narrow range until the political situation becomes clear. However, a mid-term poll appears unlikely & this will provide support to the market inthe region between 3450 and 3550.