For the first time in four weeks, the market is finally showing signs of tiring after a consistent rally. The BSE 30-share Sensex had risen from around 3250 points to a high of around 3800 points within a span of just four weeks after the presentation of the Budget on February 27.

The high badla rates of over 100 per cent on the Calcutta Stock Exchange (CSE) on Thursday unnerved the market. The high badla rates at CSE this week followed high average badla rates of around 50 per cent at the BSE last week. Brokers expect the BSE badla rates also to make a high of over 60 per cent this week. This forced the bulls to resort to considerable liquidation of outstanding positions. According to market sources, while institutionsliquidated stocks worth Rs 50-60 crore, operators squared off positions worth Rs 200 crore.

Markets for the third day on Friday continued to be jittery on account of the huge outstanding positions. The outstanding position had shot up from Rs 1,100 crore in first week of March to as a high as Rs 1,700 crore in early this week. Further, the year end considerations forced the operators to liquidate their outstanding positions. According to market sources, the domestic institutions on account of year end considerations sold heavily at the index counters which reflected on the Sensex. Out of the 33 stocks entering the compulsory demat mode on March 30 on the BSE, 16 are part of the BSE Sensex and command an index weight of around 60 per cent. The squaring up of the open position in these counters was reflected in a sharp drop in the Sensex.

On Friday, the last day of the current settlement, the BSE Sensex after opening the day at 3635.67 slipped to the days low of 3554.38 to close the day at 3597.58 points,down 80 points over Wednesday's close of 3682.69 points.

Since BSE and NSE are closed on Monday for trading, operators refrained from keeping their positions open since the badla rates would also be factored into the prices of stocks on Tuesday. The last half an hour on the BSE saw stocks like ITC, Pentafour Software, Zee and Satyam Computers register substantial recovery on account of short covering and also since these stocks will be traded on no-delivery on the BSE beginning from March 30.

According to market sources, Morgan broking continued to be a buyer at the counters of Tata Tea and Telco. Hindustan Lever finished Rs 24 down at Rs 2215 due to selling by profit-takers coupled with absence of buying support, while Nestle India shares fell Rs 3.20 at Rs 566.80.

Among pharmaceutical stocks, Ranbaxy Laboratories despite favourable corporate reports met with selling pressure and lost Rs 19.10 to Rs 621.90, Dabur India shares down Rs 36.05 to Rs 590 and Glaxo India shares lost Rs 13.50 to close at Rs910.50.

Infotech stocks like HCL Infosystems suffered a sharp setback to close Rs 46.50 down at Rs 547.50 off day's low of Rs 547.35, while Silverline Industries shares fell Rs 27.55 to close at Rs 337.15 largely due to sizeable selling by profit-takers at current higher prices. Software Solution and Digital Equipment were also under selling pressure and fell Rs 18 and Rs 30.10 to Rs 642 and Rs 353.90 respectively.