The National Stock Exchange expressed similar sentiments with the S&P CNX Nifty registering a drop of 26.95 points to close at 993.40 points. Indian shares in the overseas GDR market also reacted negatively. The Skindia GDR index fell by 2.57 per cent to trade at 603.01 points at the mid-session. The major GDR losers were L&T and Telco, which fell by 2.5 to 3 per cent. L&T fell by 2 per cent in the domestic market to close at Rs 207.

Software scrips, the biggest gainers in the post budget rally suffered the worst, with most of them hitting the lower price band. Nineteen out of the 28 top traded infotech stocks hit the lower circuit of thedaily price bands before closing slighltly higher. Infosys Technology counter witnessed only sellers despite the firm reporting Rs 135 crore net profits along the lines of market expectation. It closed at Rs 2606.75, registering a decline of Rs 208.

Other scrips like Pentafour Software, Satyam, Digital Equipment, PSI Data Systems, CMC, Fujitsu ICIM, Square-D, BFL Software, Rolta India and Silverline also touched the lower price band. Satyam, however, made a recovery to close slightly above the price freeze.

According to market sources, select private mutual funds who have decided to take a fresh exposure in FMCG stocks picked up scrips like Rolta, Digital Equipment and KLG Systel.

The net long positions on the BSE fell by Rs 77 crores. The total gross long positions was, however, pegged at a high of Rs 1,470 crores and the gross short at Rs 214 crores.

Interestingly, while the net long positions of Infosys Technologies, ITC and Pentafour Software showed a considerable fall, the net long positions atthe counter of Satyam Computers increased by 24,000 shares to a high of 6.81 lakh shares.

The crash was attributed primarily to the week-end and technical factors. Operators did not want to carry overnight position in view of the fragile political situation. Brokers said today's crash was led by operators winding up their positions in key pivotals and software speculatives under the compulsory demat segment as they will come out of no-delivery at the BSE on Monday.

The selling wave was triggred off by the widespread feeling that market has entered a new trading range of 3500-3200, having broken through the resistance level of 3550. The selling pressure was so severe that the market ignored the positive news of a buoyant Asian market.

Institutions led by the UTI and some other Indian mutual funds and foreign funds were seen doing some bargain buying at select counters. "The market should continue to languish or fall initially during the coming week on account of the political developments. The indexwill move in the band of 3,250 and 3,550 points. However by the end of the trading cycle the index should bottom out and a short-term rally could be triggered off at these levels," said BSE broker Ajit Sanghvi.

The surprise gainers today included ACC, ahich was up by 3.24 per cent, Britannia, up by 2 per cent at Rs 1346.50, Cadburys up by 1,5 per cent at Rs 606.50 and Cipla up by 5 per cent. Pfizer was up by 1.2 per cent primarily due to the short covering in the counter as the scrip was coming out of no-delivery from Monday. E-Merck was up by Rs 18 on fund support.