Sensex (BSE sensitive index) opened fractionally down at 2825.06 and gradually moved downwards to 2772.04 before closing at 2783.10 with a net loss of 41.98 points compared to the previous level of 2825.08. The BSE-100 index dropped by 17.53 points to 1242.33 from previous close of 1259.86.

Marketmen said FIIs were net sellers in key pivotals like Telco, Tisco, Reliance, Zee Telefilms, Infosys and others. The continued selling was mainly due to the prevailing political situation. Local operators made only squaring up deals they feared losses in making fresh commitments at this stage.

Satyam Computer remained the most active scrip with a turnover of Rs 197.12 crore out of the total volume of business of Rs 1146.62 crore. Satyam Computer dropped byRs 17.25 to Rs 531.75 on selling pressure. ITC lost Rs 3.50 at Rs 681.25, Reliance Rs 1.70 at Rs 111.70, Zee Telefilms Rs 13.50 at Rs 685, Telco Rs 5.20 at Rs 115.20 and Tata Steel Rs 2.20 at Rs 84.30 on profit-taking.

On the National Stock Exchange (NSE),share prices continued to fall sharply due to sustained heavy selling by foreign institutional investors (fiis) in view of the present political uncertainty in the country.The S&P CNX Nifty fell further sharply by 12.00 to 812.45 as against the previous close of 824.45.The market witnessed a total turnover of Rs 1,250.37 crore .Only 277 scrips advanced on the exchange today, while an increased number of 570 scrips fell and 129 scrips held steady. Fourteen securities hit their price bands.