Sensex (BSE sensitive index) opened marginally lower at 4722.92 and moved in a limited range of 4754.55 and 4695.91 before closing at 4709.93 with a net loss of 19.80 points compared to the previous level of 4729.73. The BSE-100 index eased by 7.99 points to 2102.24 from the previous close of 2110.23.

Brokers who were optimistic that the Sensex would cross the 5,000 mark this week, attributed the downturn to a variety of factors with the prime one being the BSE authorities decision to impose additional carry-forward margins on outstanding positions with effect from the settlement next week.

Local operators stayed on the sidelines ahead of national polls which begin on Sunday. Stocks which had hit an all time high of 4,965.79 on Monday havebeen coming down since then, losing 5.15 per cent on profit-booking amid concerns over the huge outstanding positions.

FIIs were reportedly net buyers in select scrips like Tata Tea, Wockhardt and Gujarat Gas and others. Of the 148 traded specified shares, 90 registered sharp to moderate falls while 56 showed gains and two remained unchanged.

The total volume of business was sharply up at Rs 2068.88 crore as compared to yesterday's turnover of Rs 1459.53 crore. Ranbaxy remained the most sought after scrip and clocked the highest turnover of Rs 244.18 crore. Ranbaxy dipped by Rs 36.90 to Rs 1062.10 on selling pressure. Dig Equipment lost by Rs 50.45 to Rs 631, Satyam Computer by Rs 14.90 to Rs 850.10, HDFC by Rs Rs 4.00 to Rs 261, Hindustan Lever by Rs 36.75 to Rs 2616, ITC by Rs 10.85 to Rs 983.15 and Telco by Rs 4.00 to Rs 296 on selling pressure.