The BSE sensitive index (Sensex) dropped from the day's high of 3375.23 before the mid-session to close at 3297.86 with a net loss of 32.07 as against yesterday's close of 3329.93. The BSE-100 index also dipped by 14.43 points to 1458.34 from the previous close of 1472.77.

Sustained purchases by foreign institutional investors (FIIs) in software scrips coupled with news that China has ruled out plans to devalue its currency in the face of the Brazilian monetary crisis failed to stem the rot. The downtrend was also due to selling pressure by domestic institutions.

Infosys Technologies, which touched the magical figure of Rs 5000 during the session and Pentafour Software continued to be in the limelight with sharp gains as FIIs were net buyers in these scrips.

Pentafour Softwareremained the most sought after scrip and clocked the highest turnover of Rs 204.55 crore of the total volume of business of Rs 1722.28 crore. The Pentafour scrip, which hit the daily upper circuit breaker, firmed up by Rs 69.50 to Rs 939.50.

Satyam Computer gained by Rs 8.75 to Rs 931.50, Zee Telefilms by Rs 23.25 to Rs 620, Reliance by Rs 3.30 to Rs 136, SBI by Rs 1.40 to Rs 171 and Infosys Tech by Rs 223.75 to Rs 4910 on short covering. However, ITC dropped by Rs 14 to Rs 807.25, Hindustan Lever by Rs 10.75 to Rs 1745.25 and Telco by Rs 6 to Rs 222.

On the National Stock Exchange (NSE), pivotals posted moderate losses on profit taking by FIIs. The S&P CNX Nifty closed at 957.05 with a loss of 10.15 from the previous close of 967.20. The total volume of business was Rs 2,260.34 crore. The exchange witnessed 545 scrips decline, 482 scrips advance and 95 scrips remain unchanged. 81 securities had hit their price bands.