The country's mutual fund giant itself stepped into the market today and bought pivotals. UTI officials see the falling market as an opportunity. UTI is on a strong wicket, insofar as resources are concerned. The fund is learnt to have seen fresh inflows into its US-64 scheme in the month of July. US-64 is available at the special invitation price of Rs 13.50.

Besides, UTI had mopped up over Rs 500 crore from its Monthly Income Plan (second series) last month. A part of these funds is also available for investment. UTI usually invests, up to a maximum of 30 per cent in equities out of the corpus of MIPs.

The UTI chairman has been bullish on the markets. He had said at the time of the announcement of the Trust's annual results that the markets will pick up with old economy stocks seeing appreciation in their values.

UTI has been adopting a contrarion approach in the market in recent months. For instance, it had booked profits during the month of February when the Sensex had crossed the 6000-mark. With the Sensex sliding back close to the 4000-mark, it is back in the market shopping scrips at lower values. UTI is readying itself for the launch of the next round of MIP, for which it has already filed the draft offer document.

Part of the panic on Monday is attributed to operator unwinding, say market sources.