In early one-hour trading, the Delhi Stock Exchange senstive index fell by 4.35 points at 1048.58.

Marketmen said sustained offerings by foreign institutional investors in the face of speculators unwinding their long pending positions badly hit the sentiment.

Concerns about Y2K also hit the infotech industry with the effect that most of the bullish scrips were seen pushing down on selling pressure, they said.

Commencing on a weak note, the stock prices recovered slightly on scattered buying by domestic financial houses.

Traders said the market might go further down during the day, the last session of the current settlement on the Bombay and Delhi Stock Exchanges.In the infotech category, Satyam Computers dropped to Rs 1460 against Wednesday's close of Rs 1521 on heavy selling. Aptech Ltd was down by Rs 35 at Rs 1065, HCL Info by Rs 21.65 at Rs 512, Silverline by Rs 7 at Rs 476 and Pentafour Software lost Rs 3.30 at Rs 708.

Others on the weaker side were Larsen and Toubro, Telco, Mtnl, Himachal Futuristic and Apollo Tyres on brisk selling.

However, Reliance Industries, Tisco, Acc and Grasim Ind. shares were in demand and remained firm.