The advance-decline ratio also remained negative. The selling was quite strong in tech stocks. Global Tele and DSQ Software were down more than eight per cent. Satyam Comp, SSI, HFCL, Silverline and SSI also reported a fall of more than five per cent each. Government of Singapore, market sources said, were sellers in Satyam. Otherwise institutional activity was low-key.

FIIs were net sellers of shares worth Rs 237 crore in the last two trading sessions on Friday last and on Monday. Domestic mutual funds, however, have been net buyers for over Rs 300 crore in the last five trading sessions upto last Friday.

The non-software stocks too failed to do well. Except MTNL and Reliance, other pivotals showed a negative close. Reliance was marginally up and MTNL gained more than 2 per cent. MTNL recorded an all-time high volume of 87.5 lakh shares. Market grapevine suggests that RIL will be an active contender for MTNL when the government announces its privatisation programme. The BSE Sensitive Index opened slightly lower at 4,159.87 and immediately touched a high of 4,160.13. Later, it declined gradually to log the day's low of 4,056.03 before closing at 4,089.58 against yesterday's close of 4,173.48.

The BSE-100 index also dropped by 46.64 points to 2,090.00 compared with previous close of 2,136.64.

The S&P CNX Nifty also dipped 19 points and closed at 1,273 points. The high for the day was 1,298.25 points and the low for the day was 1,261 points.

The trading volume on the BSE stood at Rs 5085 crore. The stock which gained more than 7.9 per cent were Citicorp, Nath Seeds, Vision Tech, SB&T Int, Agro Dutch, Monalisa Mul, Geojit Sec. Other gainers for the day were Jaiprakash, Top Cassettes, Rinki Hydro, Jupiter Orga, Varun Shipping, Nexus Soft, Denim Ent, Selan Exp, Asian Hotels, Centurion Bank.

At the same time, stocks which dipped more than 7.9 per cent were DSQ Soft, Global Tele, Padmini Poly, Pun Com, Advent Comp, Anco Com, Infotech Ent, Nat Radio, Task Pharma, Atn Int, Mobile Tele. Other losers for the day were Silverline, HFCL, SSI, Satyam Comp, Shyam Tele, Kale Consult, Orient Info, Hughes Soft, Leading Edge, Compuech, DSQ Bio, Indogulf Corp.

Himachal Futuristic was the most active scrip with a turnover of Rs 607.42 crore and closed Rs 111.30 lower at Rs 1,317.95. Other top traded shares were Satyam Computer (Rs 603.28 crore), Global Tele (Rs 576.22 crore), Zee Telefilms (Rs 472.82 crore) and Infosys Tech (Rs 469.79 crore).