DSQ Software remained in the focus and lost 11 per cent. The stock attracted an all-time high volume of 70 lakh shares. SSI, Wipro and Aptech also hit the lower circuit at 8 per cent. Other stocks like HFCL, Pentamedia, Rolta, Satyam Comp, Silverline, Dig Equipment, and Zee Tele also reported a sharp dip. While the software stocks remained under pressure, pivotals like Reliance, SBI, L&T, ACC, Tisco, and ITC also showed a negative close.The fall could have been sharper had Infosys followed the overall trend.

The relentless selling in index-based scrips, of which 27 showed sharp to moderate falls, took its toll on the Sensex which opened at 4666.47 and gradually moved downwards to the day's low of 4539.35 before closing at 4562.38 against yesterday's close of 4671.92, showing a net loss of 109.54 points or 2.34 per cent.

The BSE-100 index also dipped by 77.41 points to 2297.93 compared with previous close of 2375.34.

FIIs were heavy sellers in Wipro, SSI Ltd, Aptech, Rolta, Reliance Capital, Zee Tele, Digital Equip, Himachal Futuristic and few others.

Majority of the pharma shares fell sharply. Burroughs Welcome, Cipla, Dr Reddy, German Remedies, E Merck, Glaxo, Nicholas Piramal, Novartis, Ranbaxy, Rhone Poulenc, Sun Pharma and Wockhardt were the most affected.

The number of advances stood at 477, and the number of declines was 1013. At the same time, 141 stocks remained unchanged. The stocks which gained more than 7.9 per cent were Mirc Elect, A Sarahbai, Flex Chem, Bannari Amman, Supreme Tele. Other gainers for the day were Amaraja Batt, Anco Com, Paramount Co, Motherson Sumi, Media Video, Atlas Cycles, Aplab. At the same time, stocks which dipped more than 7.9 per cent were DSQ Soft, Wipro, Rolta, Rel Capital, Padmini Poly, BPL, DSQ Bio, Orient Info, Hinduja Finance, Usha Beltron, Goldstone Tech, Arvind Mills, Fujitsu. Other losers for the day were HFCL, Pentamedia, Zee Tele, SSI, Dig Equipment, HCL Info, Aptech, Videocon Int, Tata Elxsi, HCL Tech, Crest Com, McDowell, ICICI Bank, VSNL, Indogulf, TV 18, Century, Sibar Soft, Tata Telcom, Max India.

Infosys Tech was the most active share with a turnover of Rs. 785.65 crore in the total business volume of Rs. 6276.64 crore. Other top traded stocks were Global Tele (Rs. 755.97 crore), Himachal Futuristic (Rs. 697.79 crore), Satyam Computer (Rs. 606.92 crore) and Zee Tele (Rs. 573.67 crore). Global Tele was down by Rs 44.80 at Rs 1587.90, Himachal Futuristic by Rs 94.40 at Rs 1621.10, Satyam Computer by Rs 25.95 at Rs 581.50, Zee Tele by Rs 36.80 at Rs 507.20, Dr Reddy by Rs37.45 at Rs 1279.80, Glaxo by Rs 9.95 at Rs 462.15, ITC by Rs 23.05 at Rs 801.35, MTNL by Rs 5.10 at Rs 133.

NIIT tumbled by Rs 75.55 to Rs 1590.65, Ranbaxy by Rs 24.35 to Rs 683, RIL by Rs 12.50 to Rs 364.90, SBI by Rs 4.70 to Rs 199.20, TELCO by Rs3 .75 to Rs 90.45, Wipro by Rs 254.60 to Rs 2928.25, SSI Ltd by Rs 228.30 to Rs 2700.75, Aptech by Rs 42.45 to Rs 550.45, Pentamedia by Rs 34.55 to Rs 459.65, Digital Equip by Rs 33.75 to Rs 489.60 and Cipla by Rs 35.05 to Rs 715.60.