Brokers said the selling pressure erupted due to extremely cautious approach adopted by the operators in the wake of coming holidays at the exchange coupled with higher carryforward rates, averaging 47 per cent, indicating that market was in overbought position. CSE will remain closed from October 18 to 20 due to puja holidays.

This apart, strict margin systems also prevented the operators to extend their holdings as it attracted payment of higher margins, brokers added. Almost all the major counters declined sharply and some of them even attracted circuit filter at lower end. Only counters that offered some resistance were Satyam Computers, ACC and L&T. Of them, the first and the third, however, also surrendered in the end and closed with losses over the previous closing.

Reflecting the trend, CSE-40 index dipped by 98.24 points to close at 2336.27 against the previous closing of 2434.51 points. ITC, Ranbaxy, Pentafour Software, SBI, Digital Equipment, Global Tele, Grasim Industries, Himachal Futuristics, Reliance Industries, TELCO, TISCO, Tata Tea, Zee Telefilm and DSQ Software were the other prominent losers. The closing undertone was extremely weak in the absence of buying support.

On the Chennai Stock Exchange, too, stocks declined on increased selling and profit taking. However, a few counters finished with marginal gains. In absence of trading in index based scrips, MSE index stood stagnant at its previous day's close of 4832.85 points throughout the day.Polaris shed Rs 26.30 to Rs 826.40.