While the BSE Sensex lost 75.07 points to close at 4630.13 points, the S&P CNX Nifty on the NSE was down 18.35 points to 1345.35 points, despite touching its all-time high at 1375.45. According to a broker, while the first 25 point loss in Sensex was due to the unwinding of long position by the speculators, the next 50-point loss in the index was due to the panic button pressed by the small operators and the retail investors.

Apart from this, the rumour mongers also had a field day on the bourses. In the morning, there was a bomb scare in the BSE building on Dalal Street. As the search operations were started, no outsiders were being allowed in to the exchange building. Later, rumours about negative FIIfigures, around Rs 180 crore, also surfaced along with unconfirmed talks of price cut by the cement companies. The cement stocks were weak all day, with quite a few hitting the lower band of the circuit.

On Thursday the BSE Sensex opened higher at 4721.61, dipped to below the 4600-mark, went up around the mid-session to 4742 ans then dipped to the day's low at 4627.56 before closing at 4630.06. During the day it showed an intra-day volatility of around 115 points. The Nifty on the other hand opened almost at the Wednesday's level of 1363.35 and touched its all-time high at 1375.45 points. Intra-day it showed a volatity of around 30 points.

According to market players, Thursday's correction is a healthy sign for the market. ``Friday being the last day of trading in the current settlement on BSE, we expect an intra-day correction of around 30 points in the Sensex. But on Friday the Sensex is likely to close higher than today's level,'' says Chirag Sanghvi at Asit C Mehta Investment Intermediaries. AlthoughAmbareesh Bagila at Kotak Securities agrees that Thursday's correction was healthy, for Friday, he expects the market to shade a few more points. ``We are expecting the Sensex to go down by another 50 to 75 points on Friday, which will be a much healthier level,'' says Bagila.

The Rs 35 crore FII investment inflow for Wednesday is also being looked at positively by the market players. According to Sangvi, ``it looks like the FIIs are comfortable at the present level.'' According to another broker, with all Exit polls indicating a victory for BJP and its allies in the coming polls, the markets have already started factoring in the same. Also, the Calcutta badla rates on Thursday, which was hovering in the region of around 24 per cent, is a good indication that Saturday's badla rates at BSE could be in the range of 18 to 22 per cent.

However, the US statement about not lifting the sanctions imposed on India, is likely to take some enthusiasm off the market which would be clear only on Friday, said a BSEbroker.

Technically, however, the Sensex is poised to touch a new all time high in the upper side of 4900. ``By Wednesday, we can see the Sensex around 4950-level,'' says Neel B Dalal, a BSE broker. According to Dalal, Wednesday's advance-decline ratio of 6:1 in the group A of BSE was one of the most bullish indications during the recent times.

While Ranbaxy was able to attract good buying interest amidst the falling markets, the steel sector stocks, led by Telco, were also firm. And there was no signs of weakness in the infotech stocks. On the back of strong rumours (which later proved to be correct) Maars Software firmed up on both the exchanges. While it closed at Rs 502 on NSE, at BSE it closed at Rs 497. The company's board is meeting shortly to consider a bonus issue.